Someone is about to do something stupid and volatility will return

Despite outcome of French elections

One by one, investors' worries are slowly fading into the background. In particular, European equities have profited from this.

We believe the party is not yet over, corporate earnings growth is simply too good and the trend too robust, but investors will gradually have to start thinking about becoming a little less optimistic.  Earlier this month, Emmanuel Macron won the French Presidential Election. This has led to a reduction in political risk for Europe and provides a tailwind for European equities. However, parliamentary elections are scheduled for June and without enough support in parliament, there are significant implementation risks. For Prime Minister May, implementation risks were a reason to une...