Market volatility set to increase in the near-term

Here's what we're thinking

March 28, 2017

Markets have traded with a more cautious tone for much of March following February’s impressive gains. While markets likely require a period of time to digest the solid returns of the past few months, recent headwinds to near-term upside have included benchmark WTI oil prices falling below the $50/barrel mark, absorption of the Fed’s March rate hike, a loss of momentum in President Trump’s agenda (including tax cut plans) and lingering European political uncertainty. In our opinion, we don’t view the Fed nor European political issues as major stumbling blocks for markets this year. In fact, clear guidance from the Fed at last week’s meeting that they are not contemplating a stepped-up pace of rate hikes should leave investors comfortable with the broader economic outlook and provide ongoing relief for international markets.

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