All quiet on the western front…

The markets have done well climbing the “Wall of Worry”.  Growth managers have outperformed value by a wide margin (risk on trade). The market valuations are still reflecting a slow growth environment as the markets are trading at a 10% discount to the historical averages. If Draghi can get Continental Europe to come together for the betterment of the whole, there could be upside for Europe which would translate to a good market in the US. We will get some more information on productivity and unit labor costs on Wednesday, but nothing that we see moving markets dramatically.  The markets have rewarded risk takers on average for the last 3 and a half years, but this is cyclical, and will change.

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