The investment business runs on quarterly measurements. No one really believes that strategies work out over one quarter periods, but investors want some measure of progress. So for better or worse, it is the treadmill professional investors are on. The first quarter is over and for the most part little investment progress was made. However, after the fantastic year we had last year, we didn’t give it back either.
Investors during this past quarter had to contend with one of the worst winters we have ever had. Geopolitical risks returned in the form of Ukraine and Crimea. China’s economy is slowing and we have new leadership at our Federal Reserve. Any one of these factors could have been reason enough for the stock market to take a swoon. The fact that it hasn’t tells us that there is a lot of underlying strength. This market looks like it wants to go higher.