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IS THE CONSUMER BLINKING?




Last year we viewed the markets in the context of excessive pessimism due to geo-political risk against the backdrop of a strengthening U.S. consumer. The commodity crash, Brexit, as well as the upcoming election had resulted in palpable risk asset volatility and valuations that we viewed as attractive. Much has changed over the last twelve months, most notably valuations and investor sentiment. Top-line macroeconomic data has not changed over the last year--at least on the surface.

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