This shows the importance of appropriate policies and avoidance of excessive comfort from level of reserves. Nevertheless, the level of reserves continues to be an important source of comfort on matters relating to  1  BIS Review 69/1999  stability in the external sector, and consequently on the domestic economy.
The 2 per cent rise in the S&P 500 Index for the year to date masks some very divergent performances. The companies most exposed to international trade actions have done the worst. Materials companies are down 12 per cent on the year, while industrials are down 7 per cent. Technology companies, in contrast, have risen 8 per cent over the same period.