Some companies have given disappointing results. Their shares suffer in an environment with risks, including high oil prices and rising interest rates.
We have a level of growth now in the world that is low enough for the Fed not to raise interest rates by a lot, but high enough for companies to grow profits in a very good way. Equities are the least over- valued asset class and growth is very decent.
The companies are profiting from these higher prices. This is becoming a familiar picture among energy and mining stocks and we expect it to continue.