Corporate earnings season trumps geopolitics

Fundamentals drive markets and there is no more telling fundamental than corporate earnings aka "the bottom line". Second quarter earnings have kicked off. So far, they are dripping in positive but will be in full swing in the next few weeks. Expectations of -4.1 percent for the quarter are similar to the first quarter but, like last quarter, it is expected to squeak out another positive due to overly pessimistic expectations.

Meanwhile, another proposal is on the table, this time, an Iran Nuclear Deal. But, geopolitics doesn't trump fundamentals which have been broadly positive despite weaker than expected retail sales this morning. Markets are back to positive for the year and bond yields have surged on this good economic data.  A strategy that is making a comeback is senior loans or floating-rate loans that are a good hedge against unexpected rising rates, says Voya Global Perspectives.