Markets Look for Momentum after a Volatile Q1
Equity markets had a volatile quarter, and their weakest in the last six, driven by concerns about rising interest rates, potential trade conflicts and valuation concerns. As I have written in the past, fundamentals for the economy and corporations remain solid, and as a result I anticipate the quarter will start off well, as favorable economic data and earnings support positive returns. I also expect interest rates to slowly move higher and approach 3% on the 10-Year Treasury. I will be keeping a close eye on oil (which ended the quarter around $65) and other commodity prices to reinforce the strength of global growth.
On the economic front, the first week of April is headlined by Friday’s release of the March Employment Report. I expect to see continued solid gains in new jobs and average hourly earnings. The unemployment rate may fall to the lowest level since 2000.
Opinions and statements of financial market trends that are based on current market conditions constitute judgment of the author and are subject to change without notice. The information and opinions contained in this material are derived from sources deemed to be reliable but should not be assumed to be accurate or complete. Statements that reflect projections or expectations of future financial or economic performance of the markets may be considered forward-looking statements. Actual results may differ significantly. Any forecasts contained in this material are based on various estimates and assumptions, and there can be no assurance that such estimates or assumptions will prove accurate.
Investing involves risk, including possible loss of principal. Past performance is no guarantee of future results. All information referenced in preparation of this material has been obtained from sources believed to be reliable, but accuracy and completeness are not guaranteed. There is no representation or warranty as to the accuracy of the information and Penn Mutual Asset Management shall have no liability for decisions based upon such information.
High-Yield bonds are subject to greater fluctuations in value and risk of loss of income and principal. Investing in higher yielding, lower rated corporate bonds have a greater risk of price fluctuations and loss of principal and income than U.S. Treasury bonds and bills. Government securities offer a higher degree of safety and are guaranteed as to the timely payment of principal and interest if held to maturity.
All trademarks are the property of their respective owners. This material may not be reproduced in whole or in part in any form, or referred to in any other publication, without express written permission.
Copyright © 2015 Penn Mutual. All Rights Reserved. All trademarks are the property of their respective owners.Read Less...