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Vanguard LifeStrategy Funds Q2 2026
Two contrasting forces shaped the global economy and financial markets during the second quarter: the energy shock caused by the Iran war and optimism surrounding artificial intelligence (AI).
Global shares significantly outperformed bonds, with US and emerging market shares leading the gains. Rising investment in AI-related infrastructure and expectations of stronger company earnings supported share prices. In contrast, bond returns were weaker as investors feared the Iran war could drive up inflation, raising the prospect that interest rates would remain higher for longer.
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