Stock markets continued their upward trajectory in the second quarter. Shares rallied on strong earnings reports and seemed unfazed by increasing political uncertainty, which clouds the outlook for tax reform and other pro-growth initiatives.
Broad U.S. equity market indexes rose in the first quarter, touching record highs before pulling back slightly at quarter-end.
U.S. election results propelled markets forward in the fourth quarter, presumably driven by the outlook for pro-business policy changes.
Data on the economy points to a generally positive backdrop. U.S. GDP continued to expand, gaining some steam in the quarter.
Stock selection was the primary reason for the fund’s below-index results in the third quarter.