May 31, 2018— Over the last week there were significant developments in Italian politics that roiled worldwide markets. We believe some of the market volatility was an overblown reaction to the proposal of an anti-euro finance minister, dredging up Greece-style fears of cracks in the eurozone but in a much larger, more consequential country. The proposal was more political theater than anything else.
February 26, 2018 – Ever since the surprise Brexit referendum in June 2016, global investors have been closely watching European elections for signs that political instability might impact regional economic progress or equity markets. On March 4, it is Italy’s turn for general elections. Italian voters go to the polls to elect a new Chamber of Deputies (lower house of parliament) and Senate (upper house).
February 8, 2018— Since January 30, we have seen sharp movements in both domestic and international equity markets. The most significant drop thus far came on Monday, Feb. 5, when the S&P 500 declined by 4.1%, and international markets fell as well. Global markets remained volatile on February 6 and 7. A notable feature of the early February 2018 equities pullback is the low dispersion of negative equity returns across global markets.