Market Summary

U.S. equities, now six years into a bull market, have proven their mettle in the face of increased market volatility. While the seemingly imminent Fed rate hike could potentially add another risk to the market’s momentum, the fact that yields are coming off from almost zero still makes equities compelling.  At the time of writing, it appears that a Greek default and exit from the Eurozone has been averted for now.  Investors probably haven’t heard the last of t  is issue; fortunately, the headline risk to capital markets posed by a “Grexit” is greater than the actual contagion risk.  

Another developing story further afield relates to the hot and sour experience that Chinese investors have had with capitalist equity markets. Despite a precipitous drop that has engulfed late‐arriving retail investors, the Shanghai composite is still up 8% this year and 70% above its level a year ago. This article sums up the current state of the global markets, despite the latest setbacks.