Denali Wealth Management

2018 Q1 Market Commentary

General Market Commentary as of March 31, 2018

Global equity markets declined in Q1 with investors unnerved first by concerns about the path of US interest rates and then worries over trade. Global bond markets reflected higher inflation, with most major government bond yields climbing.

Equities

US equities began the year strongly, boosted by tax reforms, but ended the quarter lower amid concerns over inflation and the impact of US-China trade sanctions. Indeed, macroeconomic indicators remained broadly positive throughout Q1. US business confidence reached an unexpected, multi-decade high in March. GDP for Q4 2017 was revised upwards to show growth of 2.9%, and while industrial activity slowed, as measured by the ISM manufacturing index, it continued to indicate expansion.

Treasury

US Treasury yields rose markedly across the curve over the quarter. Corporate bonds made negative total returns and underperformed government bonds.

Market Recap

Tot Return3-MO*12-MO*3-Year*5-Year*Closing Value
S&P 500-1.17%11.83%8.51%10.98%2,640.87
Dow Jones Industrial Average-2.49%16.65%10.68%10.58%24,103.11
NASDAQ Composite2.33%19.50%12.96%16.67%7,063.45

Source: Morningstar. The S&P 500, Dow Jones Industrial Average, and NASDAQ Composite are unmanaged indexes. It is not possible to invest in an index. Past performance is no guarantee of future results. * Price only. Does not include dividends.

All overviews and commentary are intended to be general in nature and for current interest, educational purposes and factual reference only and are subject to change based on market and other conditions.

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