AVUV - Finding Victories In A Confusing First Quarter For Global Markets

2024-04-03 08:30:00 ET

Summary

• Market swings punctuated the first quarter as “central bank speak” proliferated and caused confusion.
• I put first quarter global markets into perspective and highlight some “little victories” that may have been easy to overlook.
• The core Personal Consumption Expenditures Price Index for March came as a relief - and got a vote of confidence from Federal Reserve Chair Jay Powell.

I ran into a financial advisor I know after church on Easter Sunday, and I asked him what he and his colleagues are hearing from clients after such an impressive quarter. He said they can't make sense of what's happening in markets. That's not surprising. Market swings punctuated the first quarter as "central bank speak" proliferated and caused confusion. Below, I put first quarter global markets into perspective and highlight some "little victories" that may have been easy to overlook.

First quarter market roundup

Equities. The first quarter was a strong one for equities around the world, with few exceptions. ¹ Japanese equities were the standout performer, posting double-digit gains. This was followed by the US, with the S&P 500 also gaining more than 10%. European equities also posted solid gains, with UK equity gains more tepid. Emerging market equities also experienced small gains while Chinese equities in particular lost modest ground in the first quarter, adding to oversold conditions. \...

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