Two trends are setting the agenda for asset prices. One is the ongoing global economic expansion: Recent data suggest the outlook has improved a bit further, and equities are likely to continue to benefit. The other, however, is the prospect of less supportive monetary policy...

Most asset classes have done well. Bond yields have dropped back, despite the Fed tightening US monetary policy, as investors reckon that the strong fiscal stimulus they previously expected from the incoming Trump administration will, at a minimum, be delayed. 

Growth assets have performed well year to date, initially on the ”Trump trade” theme of a fiscally-stimulated U.S. economy, but more recently on the back of wider evidence of faster global economic growth and a happy outcome from the French presidential election.