Perspectives Newsletter: Q1, 2014
In a choppy first quarter, most averages eked out modest gains. Favorable corporate earnings results vied with geopolitical concerns for investors’ attention. Developed country markets, especially the US, handily outperformed emerging markets as the 1970’s term “stagflation” (stagnant economy with inflationary pressures) was resurrected to apply to slowing growth coupled with rising interest rates in developing economies. Within the S&P 500, a rotation away from the highfliers of 2013 into more value-oriented stocks was evident.
