This year's first half was exceptionally strong for risk asset markets. US equities outperformed all other markets, reaching historic highs, while our defensively-tiled sustainable quality strategy surged even more, and was much less volatile.
Credit spreads tightened as interest rates generally slumped, with euro area sliding to new lows in negative territory (e.g. in Germany and France, graph 2). About one fifth of the world's outstanding government bonds, or about 12.5 trillion US dollars (USD), now guarantee negative returns if held to maturity.
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Note: The next edition of the LGT Beacon is scheduled for August 2019.