Thoughts on the Most Recent Bout of Market Volatility
What a difference a month makes. The rosy outlook for corporate America did not fade this month. However, the equity markets both home and abroad faltered over the last five weeks as uncertainty over the sustainability of earnings growth fueled speculation that the equity bull market in the US has run its course. Continued dollar strength and geopolitical uncertainty has weighed on Emerging Markets, a trend that commenced in January of this year. And geopolitical uncertainty from London to Berlin to Rome has weighed on consumer and business optimism in Europe, sending benchmarks markedly lower over the course of the month and year.