Q2 2016 Economic and Market Perspectives

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Financial markets kicked off the second quarter with an increased level of anxiety. With the ongoing impacts of declining oil prices and central bank actions, compounded by the current presidential election, this uncertainty is understandable. However, we believe there is no immediate cause for concern. We anticipate energy prices will remain volatile, but continue to believe price declines are more supply- than demand-driven and that the market will find its balance. Similarly, while global central bank monetary policies may encourage investment in riskier assets, we believe that markets will return to their senses and fundamentals will win out.