Economic Policy Uncertainty On The Rise by Jennifer Thomson, Gavekal Capital

Current levels of economic policy uncertainty have risen lately, especially in Europe:

Economic Policy

France and Germany contributed the most to the latest rise in the overall index:

Economic Policy

Europe

Whether the trend upward since 2014 is a passing phenomenon or the beginning of a more sustained spike remains to be seen.  The historical relationship between prolonged periods of uncertainty and the stock market suggest caution is warranted:

Europe