“Whenever you find yourself on the side of majority, it is time to pause and reflect.” -Mark Twain-

After an unusually rough start, equity markets have reached new highs in 2016, thanks in large part to Central Bankers around the world, who remain overwhelmingly committed to keeping interest rates “lower for longer”.

The hurdles have been many.  First, growth has been limited and in some sectors non-existent.  Energy, which often signals future growth or decline, has been extremely volatile.  Business investment has decreased.  China, the world’s second largest economy experienced a significant pull-back.  British voters quite unexpectedly decided to pull out of the European Union, calling the long-term viability of the union into question.  Yet despite these obstacles, equity valuations have continued to climb relatively unabated.

CAM Quarterly Newsletter Q2 2016