Strong economic growth and rising equity markets continued through the second quarter, as vaccines to Covid-19 became more widely available and social distancing protocols were relaxed. Looking ahead, we survey an economic landscape that has been fundamentally reshaped by the real-world stress-test it has endured over the last 18 months. We also highlight two positions from diversified client portfolios that illustrate what our team has gotten right (and wrong) about investors’ response to economic and market developments so far this year. There is much to be optimistic about, but the question for investors is how much of that optimism remains to be priced into markets…
