By Bill Witherell, Ph.D.
International equity markets recovered strongly in the first two and a half months of 2019. This followed last year's sharp drop in global markets, particularly in December. The revival in investment sentiment has occurred despite a moderation in global economic growth, which has eased from an annual pace of 3.8% in 2018 to 3.4% this year. Investors' fears of a sharp slowdown in China, monetary policy tightening in the US and Europe, and a worsening trade conflict between the US and China have all lessened somewhat. Corporate earnings and strong profit