Investor confidence of late has been dented but looks to be (generally) holding up.  This story may be one of rotation from sectors into areas that appear to have great opportunity.   U.S. equities gave back their sizeable January inflows, but flows into non-U.S. developed market and emerging market (EM) equities have more than offset the loss.  U.S. investment grade, EM debt and U.S. government bonds have attracted inflows.

For now, Investors remain focused on trade issues where tensions rose near the end of March.  However, last week we saw conditions improve as Chinese officials indicated they may be open to negotiating resolutions.  In theory, the Chinese government has signaled that it will make some concessions.  Such a move would avoid any disruption in the global trade and afford President Trump a political win.  Indeed, we see a full-blown trade war as unlikely.

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