Resources

Capital investment is accelerating, a trend we believe should continue.

Downgraded precious metals view to negative/neutral from neutral.

Investment-grade (IG) corporate bonds have been the worst-performing high-quality bond segment year to date.

The Fed is widely expected to raise rates for the second time this year at the conclusion of its policy meeting on Wednesday.

After the longest run of outperformance of growth stocks ever, we think value may be poised for a comeback.

“Economic reports released in May 2018, largely reflecting economic activity in April, showed continued solid economic growth in the U.S.”

Overall, we think the global economic backdrop, particularly in the U.S., remains intact. Although the situation in Italy is an ongoing risk worth monitoring, we don’t believe it indicates a change in the trajectory of the global economy.

Market reaction to Italy’s political woes was swift and pronounced, but ultimately overdone.

When we compare Europe’s economic and corporate fundamentals with those in the U.S., even factoring in valuations, we think Europe comes up short.

The May jobs data were generally positive, and job growth may be accelerating after slowing since 2015.