PORTFOLIO Bonds & fixed income

With the ECB expected first to change its communication emphasis over the summer followed by a move to ‘taper’ its quantitative easing programme moving into 2018, investors should expect the ‘one-way’ trend in Eurozone rates to transition to increasingly ‘two-way’ volatility, much as seen in the post-2013 period following the end of the US quantitative easing programme in 2013.

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PORTFOLIO Stocks & equity markets

With global equities rising 7% in 1Q2017, valuations appear somewhat high on a historical basis. However, the bulk of this overvaluation is due to elevated multiples in the US, where at 22x trailing earnings, valuations have only been at such a level during the tech bubble of 2000-01.

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