Strength in Technology Continued to Drive Market Returns
Global equities delivered positive returns in the second quarter with emerging markets outperforming developed markets. U.S. stocks continued to lead developed markets on the back of strength in large technology stocks, while European markets lagged, despite solid performance in the U.K., strength in large pharmaceutical companies, and an interest rate cut by the European Central Bank. Political uncertainty and modest growth prospects weighed on sentiment in Europe. Weakness in Japan also weighed on developed market performance, with the poor performance driven by a slide in the Japanese Yen. Emerging markets outperformed on the back of strength in semiconductors and cyclicals in India and China, which offset weakness in Latin America. In India, more economically sensitive stocks in the industrials, telecoms, and materials sectors outperformed despite heightened market volatility following the Indian election results.
Investment Partner
The commentary is the opinion of SGA. This material has been prepared using sources of information generally believed to be reliable; however, its accuracy is not guaranteed. Opinions represented are subject to change and should not be considered investment advice or an offer of securities.
Market Volatility: The value of securities in the portfolio may go up or down in response to the prospects of individual companies and/or general economic conditions. Price changes may be short or long term. Foreign Investing: Investing in foreign securities subjects the portfolio to additional risks such as increased volatility; currency fluctuations; less liquidity; less publicly available information about the foreign investment; and political, regulatory, economic, and market risk.
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