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Showing posts from May, 2017

Q1 Market Recap - Yin and Yang

Last quarter we reported to you that investors turned decidedly bullish toward equities after the U.S. election. That trend continued in the first quarter of 2017, with the S&P 500 Index hitting an all-time high of 2395.96 on March 1, immediately following President Trump’s conciliatory speech to Congress. That represented a 12% advance in the Index from pre-election levels. The Index closed the quarter off the all-time high, at 2362.72, as investors re-evaluated the probability of President Trump and Congress’ ability to deliver on tax cuts and increased federal spending on infrastructure. The S&P 500 returned a very strong 6.07% in the first quarter—the sixth consecutive quarter of positive returns for the Index. In Chinese philosophy, yin and yang describe how seemingly opposite or contrary forces may actually be complementary, interconnected, and how they may give rise to each other as they interrelate. The U.S. has entered a period where proposed policy or political risk