Asset class challenges and opportunities: What lurks beneath

Where to look for glimmers of hope

We live in interesting times. Not exactly a contentious statement, but when you spend your days following markets and asset classes, there can be times when an outside perspective adds a great deal of insight into how bizarre markets have been this year.

For me, this came when one of our wealth manager clients relayed an anecdote about a client. While reviewing his quarterly report for Q2, with the painful memory of the first quarter fresh in his mind, the client had expected another deluge of red ink given the negative headlines at home and abroad. He was stunned to see that markets have rallied significantly, almost erasing the losses from Q1.  This should give us all pause for thought regarding the sustainability of the current market structure and, most importantly for clients, where positive returns can be found from this point o...