STAY CAUTIOUS AND HAVE LOTS OF COOL DRINKS!

Edito Whether you like it or not, August is still tainted by a mixture of excitement (especially among the future holiday-makers) and fear (for investors on holiday in July). This year again, it is still easy to find reasons to worry, on top of the heat wave. First of all in poli -tics, with the subject of the trade war and its tweet-based twists and turns. In stocks: despite very good corporate results overall (86% positive surprises for half the Q2 results published for the S&P500), yesterday’s Facebook drop reminds us that the growth outlook, which is still getting higher, will be difficult to keep up in coming quarters (with an economy that is already running above its potential pace), and that the market could have trouble accept- ing it. With American indexes at their highest, volatility again close to 10% and re-leveraging of major investors, we cannot exclude another episode of correction. In bonds, you will have to monitor the BoJ starting next Tuesday, with speculation about a possible change in the BoJ’s policy which was set in September 2016. Be-yond the impact of the bond market, a re-orientation by the BoJ to fewer long purchases would be the ultimate symbol of global li- quidity that will be contracting... In a word, let’s take advantage of the summer, but stay cautious... and have lots of cool drinks. Next publication of Market Weekly News: August 31. Have a nice summer!