Navigating Global Markets: A Q2 Success Story
Outperforming Benchmarks Amidst Market Shifts
In the second quarter of 2023, the Lazard International Strategic Equity Portfolio achieved a significant milestone, delivering a 13.8% net return, notably exceeding the MSCI EAFE Index's 11.8% rise. This performance reinforced the portfolio's leading position against its U.S. counterparts for the year.
Robust International Equity Market Growth
Global stock markets experienced substantial gains throughout the second quarter, further extending their year-to-date advantage over the United States. This surge was underpinned by the sustained strength of corporate earnings outside the U.S. despite an unstable geopolitical landscape. Additionally, the stability of international currencies relative to the U.S. dollar played a crucial role in supporting these markets.
Key Market Trends and Sector Dynamics
The prevailing \"risk-on\" sentiment influenced market behavior, leading to small-capitalization stocks outperforming large-cap companies. Concurrently, growth-oriented investment strategies showed superior returns compared to value-focused approaches. This market dynamic unfolded as interest rates remained relatively stable, providing a conducive environment for riskier assets.