Q2 2018 – Annandale Capital Quarterly Commentary
Despite escalating trade tensions during the quarter, US equities were able to more than recoup first-quarter losses. Overseas equities continued to struggle and are negative on the year. The principal driver behind weak overseas performance has been a stronger US dollar, as US investors who purchased foreign equities in local currency terms must convert their holdings back into US dollars at a less advantageous rate. Fixed income markets were essentially flat during the quarter, despite higher interest rates across the board. Year to date, most fixed income sectors are negative.