March 2016 Flash Report

After months of tightening US dollar liquidity, slowing growth, increasing risk premiums, terrible returns, and a dismal start to 2016, risk assets staged an extraordinary rally in March. Investors relaxed their extreme deflationary pessimism as the Fed tamped down elevated rate hike fears and other central bankers eased aggressively. These signals, along with improved economic data (US GDP +1.4% revised from 0.7%), led to surging equity returns (especially in emerging markets), strong credit performance, a falling dollar, a sharp rebound in commodity prices, falling real yields, and a more constructive view of prospective macroeconomic and financial market performance.

Download the flash report (PDF) here »

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