Around The World In 100 Words : JULY 2016; Week 27

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A winning week, with equity markets adding more than a full percentage point. Not too shabby! The overall economy hasn't changed much, nor has the Earnings outlook for global companies. The explanation then is that investors were simply in a buying mood.

Brexit concerns have taken a back burner to other news including the tragic events in Dallas that saw 5 uniformed police officers killed in the line of duty. Our thoughts and prayers go out to their families.

Japan saw Prime Minister Abe returned to office with a majority, sending stocks higher as investors are betting on additional monetary and fiscal stimulus. Both are expected to add to economic growth over the short to medium term.

But Japan, like the rest of the Developed World continues to face long term issues including aging demographics and declining productivity. Both are structural and are expected to act as a drag on global economic growth and stock markets.

As such, we remain committed to a cautious strategy which combines government and corporate bonds with dividend paying blue chip companies, in a diversified fund portfolio. We are happy to have weeks like last one, but interest-bearing funds are essential to lowering overall portfolio risk. This point is best evidenced through the relative outperformance of our portfolio allocations which gained 1%+ on average to June 30th, versus -7% for global stocks markets. Slow and steady wins the race.