I’ve been bullish on equities for 2 years and we’re not ready to change this call. While equity markets have had a strong run and this makes them vulnerable to tactical corrections, we believe they will emerge through rising uncertainty to trade meaningfully higher as cyclical tailwinds strengthen and structural tailwinds broaden out. We know markets have rallied hard, seemingly at odds with the extent of fundamental improvement in equity drivers. We also know that amongst the many risks, US political developments are injecting an entirely new level ofvolatility into economic and investment outcomes and have given us a glimpse of the chaos and instability that can be expected in years ahead. But equally, the past few weeks have shown us that calm can quickly return to markets once the storm blows over or once a reasonable assessment of the impactcan be determined.
