Brian Andrew, CFA, President and Chief Investment Officer along with Dave Carroll, CFA, Senior Portfolio Manager provide an analysis of the first quarter economics and markets. Brian addresses the end of U.S. Quantitative Easing (QE) and the beginning of QE in Europe and its effect on interest rates, currency valuations and stock prices. He continues with a further review of the value of the dollar versus Europe and Japan. He points out a key signal on what to watch with these themes: central bank policy, currency value and earnings when considering portfolio positioning.
Dave follows along with the comparison of the U.S. to Europe and Japan in first quarter equity market performance, and a review of historical equity valuations as a result of rising interest rates. He concludes with a timely review of what is happening in the oil markets.
We hope that the presentation brings some clarity to what’s going on and how we are thinking about portfolio positioning.