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Q2 2020 Commentaries
Valuations have come down from extremely overvalued to slightly overvalued in the US. Emerging markets are the most attractive broad market from a valuation perspective.
Market sentiment is negative, having deteriorated rapidly during the first quarter of 2020. Intermarket relationships as well as factor and sector performance across asset classes remain supportive of a defensive posture.
Global economic growth has dramatically dropped since the start of the year. Signs of accelerating growth, seen in the fourth quarter of 2019, have quickly vanished in wake of the coronavirus. It will take time to recover and the worst is not behind us as data should continue to get worse for the coming months.
The Fed moved from an already accommodative stance to unprecedented action. Global central banks are now expanding their balance sheets and easing policy in hopes of stimulating the economy during the global recession.