Financial Markets Review by Mark:

First Quarter 2016 Review –
What a wild first quarter! After the stock and corporate bond markets had one of the steepest sell-offs during the first 7 weeks of the year (and the S&P 500 was down over 10%), the markets rebounded to end the quarter virtually unchanged for the year. As frustrating and scary as this was, Optivest clients were aided by our defensive start, purchases on dips and continued advances on our REIT holdings, which collectively resulted in one of our best quarters ever.

U.S. Economy –
The year started off with one of the biggest “false alarm” market scares in years. Worries increased about global slowing/recession, deflation, Chinese devaluation, falling profits, excessive emerging market debt and corporate defaults due to cheap oil. The usual “safe haven” investments – gold, U.S. Treasuries and Swiss Franc – rallied, gaining momentum born from fear. Finally, oil appeared to bounce at about $28/barrel enticing “bottom fishers” who first gave the equity and commodity markets a push, then a retest of the bottom, followed by a 7 week rally ending right back where they started the year. “Safe haven” price gains have held while all of the worries remain, indicating future volatility.
Continue reading →