In the second quarter, major asset classes held onto the first quarter’s impressive gains despite decelerating corporate earnings, a seemingly abrupt turn in U.S. monetary policy, and significantly heightened tensions between the world’s two largest economies. Beyond the U.S.-China trade spat, other geopolitical disturbances erupted: In the Straits of Hormuz, Iran was implicated in attacks on oil tankers; in Hong Kong, residents turned out to support the island territory’s unique legal protections in the largest demonstrations since its handover from Britain to China in 1997. The UK’s exit from the European Union remained constipated, costing Prime Minister Theresa May her post and spreading further heartburn across the Continent.
Quarterly Market Outlook
The Clear Harbor Market Outlook is a quarterly market update.