Market Continues to Climb the Wall of Worry with Fireworks in July

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How many asset classes are negative for the year through July? Would it surprise you to learn that all ten of the leading asset classes were positive for the year? The equity market is having its best start since 2003 and its second best since 1998-with fixed income having one of its best years ever.

This performance in the face of widespread negative perceptions demonstrates the importance of the market signals ING Chief Market Strategist Doug Coté has been stressing all along. In this month's ING Global Perspectives commentary, Market Climbs the Wall of Worry to Watch July Fireworks , he takes a closer look at "the risk gap," the inordinate fear of any risky asset class that can cause sidelined investors to miss out on the returns generated by the ABCDs of fundamentals:

  • Advancing Corporate Profits - Q2 earnings growth has once again confounded Wall Street, up for the 12th consecutive quarter.
  • Broadening Manufacturing - Two monthly dips after 34 straight months of expansion is a signal we're watching closely for future trends.
  • Consumer Strength Underestimated - Personal income rose in July, the savings rate increased to 4.4%, and housing prices increased for the second consecutive month.
  • Developing Economies are Driving Global Growth - In 2001 less than half the global economic growth came from "developing countries" like China; today it's nearly 80%.

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