trade war

Market Update: Q2 2018

Market Update: Q2 2018

Stock markets here in the U.S. are traditionally pretty quiet over the summertime.  The kids are out of school, the weather is hot, and many financial managers, traders, and practitioners prefer to spend their time on vacation or in the pool. 

But like many industries, finance is changing rapidly today, and traditions are being upheld less frequently.  This summer, while the markets have more or less adhered to the summertime lull tradition, the financial news has not.  Among other topics of note, we have:

  • New tariffs on imports here in the U.S., and escalating trade tensions as a result;

  • Unceasing & fresh political headlines, and;

  • A tightening monetary policy by the Federal Reserve Bank here in the U.S.  

In response to all this, markets here in the U.S. haven't blinked.  (Or maybe they haven't opened their eyes yet).  Volatility continues to be extremely low compared to the last 25 years of returns data.  And that includes the returns of bonds and foreign currencies too, not just stocks. 

Nevertheless, even if the market doesn't feel that all this news is worth rolling over for, it's important for us to keep an eye on what's going on.  Read on for our quarterly update on the global capital markets.