MARKET RECAP*
- Volatility continued to pick up globally in March causing most markets to finish the quarter in negative territory
- The S&P 500 experienced its first quarterly decline since the third quarter of 2015
- The S&P 500 finished the month with a negative 2.7% return
- Top Sectors: Real Estate (+3.8%), Utilities (+3.8%)
- Bottom Sectors: Financials (-4.3%), Materials (-4.2%)
- Large Cap Value beat Large Cap Growth in March as Growth experienced its worst month since January 2016
- Small Cap stocks gained 1.2% on the month, outperforming both large and mid-cap stocks
- International Developed countries outperformed U.S. stocks by 1.9% on the month
- Emerging Markets rose by 0.5% on the month, finishing the quarter with a positive 2.5% return
- Long-Term Treasury yields declined on the month as market volatility and fears of a global trade war caused a flight-to-safety into Treasury bonds
- The ten-year Treasury yield fell by 0.13%, ending the month at 2.74%
ECONOMIC NEWS**
- The economy created 103,000 jobs in March bringing the average on the year to 202,000 per month
- Manufacturing, health care, and mining industries contributed most of these job gains
- The Federal Reserve met in March and decided to increase the Federal Funds rate by 0.25%, bringing us to a range of 1.50-1.75%
- Fed members now expect to raise their policy rate by another 0.50% through the end of the year
- Market volatility remained elevated last month as investors fear a global trade war due to heated negotiations between the U.S. and China over tariffs being placed on exports from both countries
Asset Performance 3/31/2018**
