Heightened volatility rattles global markets, but the US economy shows no signs of weakening

So how did earnings expectations respond to the second-quarter pickup in volatility?

Time to read: 3 min

For international markets, the second quarter of 2018 was marked by continued volatility. Quantitative tightening, balance sheet normalization, trade war concerns and political uncertainty all played a critical role in challenging the synchronized global growth we watched unfold last year. So how did earnings expectations respond over the past three months — and what did the pickup in volatility mean for our Earnings, Quality and Valuation (EQV) approach?


Is international stock outperformance sustainable?

We examine the fundamental factors and the macro risks

Time to read: 2 min

2017 marked only the second time in the last eight years that international markets outperformed the US, with the MSCI All Country World Index (ACWI) ex-US returning 27.19%, and the S&P 500 Index returning 21.83%.1 So is this the beginning of a sustained shift in outperformance? On one hand, there is a list of risks facing international markets, from Brexit to a potential slowdown in China. But on the other hand, international companies have recently been trading at a substantial valuation discount compared with the US, and we have been seeing strong profit expansion.

What is the EQV landscape for international markets?


Taking tally of the global rally

2018 Outlook: International stocks turn a corner, but what do the fundamentals tell us?

Time to read: 3 min

As we look ahead to 2018, it’s important to first recognize how significant 2017 has been for international markets. This is the eighth year of a global bull market, but prior to 2017, international markets had trailed the US for four consecutive years — and for six of the last seven years.1

2017 has been the first year since 2010 of global synchronized earnings growth, and expectations are for this to continue in 2018. We’ve also seen a broad-based acceleration in global gross domestic product (GDP) growth, with stronger growth in the US, European Union, Japan, Asia and Latin America. In fact, for the first time since 2007,