In short:

·         The global energy crunch is weighing on growth forecasts

·         Inflation expectations finally surge higher

·         Central banks expected to outline tapering schedule soon

In short:

Since the development of the Covid vaccines, we have taken a constructive view on equities. While equity valuations were high, they were justified by an expected recovery in earnings.  With the second quarter earnings season behind us, have we been justified in our views? More importantly, has the recovery in earnings been sufficient to moderate the high valuations?