Below is a synopsis of this investment report:
- U.S. markets rebounded in April after two turbulent months. Geopolitical headlines continued to play a significant role in unsettling investors, particularly the “trade war” between the U.S. and China. In the end, the stronger earnings momentum pushed stocks higher for the month.
- In fixed income markets, the 10-year U.S. Treasury yield peaked over 3% for the first time in more than four years, sending bond returns lower.
- Despite market volatility, economic readings continue to support a healthy expansion. The tailwind from tax cuts may dwarf any of the potentially harmful effects of tariffs. The impact of the fiscal stimulus has driven robust corporate earnings in the S&P 500 to date. For this reason, and given the general health of the U.S. economy, we think it’s too early to call an end to this economic cycle and the bull market.
For full access to the investment report titled “Global Monthly Focus – April 2018”, please contact us.