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Download The Economic Update - June 2014

June 2014 - Summary

Financial markets rose strongly in May. The key driver was the continuation of the global search for yield, supported by both low and stable inflation across the developed world and the success of central banks in these countries in anchoring cash rates expectations. These combined resulted in an unusually high correlation between US Treasury yields and other asset classes, with both fixed income and equity markets performing well. The strong equity returns in the month made a mockery of the adage “sell in May …

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