The best first half performance in four years by the broad US market was not enough to keep pace with international markets, led by the stocks of emerging countries. A powerful combination of better than expected growth, attractive valuations when compared to the US and a weakening US dollar underpinned the move in international equities. Emerging Asia and developed Europe were the stars of the international markets while Latin American markets were a drag due in large part to Brazil. Domestically, the quarter began in much the same way the first quarter ended, with growth and large cap strategies outperforming value and small/midcap in a decidedly risk off trading environment. June saw a reversal in these trends as first quarter GDP was revised higher and a number of timely economic indicators pointed to steady growth for the US.