Market Overview – Q2 2015

07.21.2015 By

From our latest Investment Newsletter…

Central bank action was a dominant theme this quarter. While the ECB and Bank of Japan maintained their massive stimulus programs, the Federal Reserve, bolstered by mostly positive economic data, continued to signal for an interest rate hike sometime this year. If, when and by how much rates may rise, continued to be key questions on investors’ minds.

In June, a substantial global sell-off in government bonds saw yields rise materially in many economies around the world (in some cases over 0.5%) before eventually falling again by the end of the quarter—although yields broadly remain at higher levels than the extreme lows they hit earlier this year. These moves highlight the potential for the volatility of yields to remain elevated. They also suggest that investors are incrementally less concerned about the risk of deflation…

Read our full account of the quarter here.

 

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