In this month’s Global Markets Overview:

  • Equity prices have risen in all major markets since the beginning of the year, either partially (Europe, Japan and China) or broadly (US) offsetting negative price returns in 2018.
  • While the valuation of most indices is now lower than a year ago, our analysis suggests investor expectations for future earnings growth are still moderate.
  • It is our opinion that consensus and market pricing require a continuation of recent strong corporate outcomes. We expect economic growth and earnings growth to be lower than market expectations and expect low equity returns on average over five years.

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