Non-U.S. equity investors continued to be pummeled by geopolitical anxieties and economic forces unseen since the 1980s. Russian aggression may be the proximate cause for a new wave of populism in Western Europe, leading to a far right-wing leader in Italy and a rightward shift in Swedish politics over the quarter. Liz Truss’ disastrous forty-nine days as UK Prime Minister sent shockwaves through global debt markets that led to fears of a GFC-style unraveling. Fortunately, bond yields, which had risen dramatically after her botched tax reform, have largely reverted to previous levels with her ouster. Chinese leader Xi Jinping’s ever-tighter control over his nation’s institutions may mean a more militarist and less mercantilist China moving forward.

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