Midpoint Musings
At the midpoint of an eventful year, what does the investment landscape look like? Though there will always be some areas of weakness and lurking risks, broadly speaking, the environment seems positive. Known risks tend to occupy investor’s minds and are therefore also largely discounted in markets. It is the unknown or surprise outcomes that cause real market volatility. The string of recent unexpected election outcomes is a case in point. While it was common knowledge that France has high government debt levels and a rising political right, few worried about it until the prospect of a populist government suddenly emerged following President Macron’s unexpected calling of a snap election.