Equities continued their unrelenting ascent in the month of May and into the first week of June as market participants cheered a global reopening and optimism around the recovery abounds. The uncertainty that plagued markets in the first quarter has been eschewed for a momentum driven market, firmed by a seemingly endless monetary and fiscal stimulus. We remain cautious on traditional equities and risk assets generally at this juncture. Markets underpinned by optimism, monetary support, and greed do not present the type of risk/reward that we seek even for our most long-term investors.

At Gideon, maintaining a balanced, independent outlook for our clients, weighing risks in order to tailor portfolios and solutions that meet our clients’ needs and objectives, across market cycles, has been our consistent focus. As such, in this letter we present a balanced outlook that presents performance, valuations, and risks across asset classes.