We are a little more cautious amid rising U.S. rates and economic and profits cycles that are long by historical standards. We find opportunity in our-of-favor areas including emerging markets and Europe, and many financial stocks look attractive.
We believe the Brexit negotiations will conclude with a relatively “soft” Brexit. But, as current media headlines show, there are still a number of compromises that need to be made on both sides to seal the deal.
Our title refers to a condition that frequently leads to rougher water. We see the market’s steadier fundamentals (tide) coming into conflict with outflows (wind), which has raised volatility in the period.