After a three-month reprieve, the markets look as though they have found their footing. Domestic and most international equity markets have moved to new highs. Interest rates have stayed relatively low and this has acted as a catalyst for investors. There are a few things that stand out to us about this market and the global economies:
We are encouraged by what we see in the global economies. For the first time in a long time, the rest of the world seems to be waking up. This type of global improvement could help sustain growth and create a more consistent environment for development.
The markets have rallied to new highs in the last month, with the rally very broad in nature. Most major indexes have jumped to new highs and we are continuing to see leadership in the Technology and Financial Services sectors. If the economy continues to improve, this rally could continue, albeit with some bumps in the road. There are a couple of thoughts we have regarding this market and the economy:
The markets are currently in rally mode and it’s a welcome change from the crazy volatility we experienced last year. That being said, we would expect volatility to rear its ugly head at some point this year. But, we believe the path of least resistance is still up. So, we will look to use market volatility to our favor.