Generally speaking, the purpose of EVA is to communicate Evergreen’s overall outlook on the markets and economy. We tend to stick to this script by writing on topics such as central bank policy, inflation, the stock market, the bond market, and energy. One theme we try to avoid – or at least stay neutral on – is politics.
It’s been nearly a year since our newsletter last touched on the passive investing phenomenon. And yet, despite its absence from these pages, direct asset flows into passive vehicles have continued to outdo their active counterparts at a dizzying pace.
The original idea for this week’s EVA was to compile a list of “winners” and “losers” should the escalating trade war play out fully.
The second quarter of 2018 kicked off with a bang as growing tensions in technology and trade sent investors searching for cover on Monday. In fact, it was the worst April start since… drumroll please… 1929.
In an echo of the early February market meltdown, panic unexpectedly shook markets as President Trump unleashed the opening salvo in his war on trade at the end of last month. Bloomberg even went so far as to dub the pull-back a “Tariff Tantrum” in an ominous ode to the Taper Tantrum of 2013.