Market Commentary March 2019

The stock market has logged several weeks of unbroken gains, which is starting to make contrarians cautious. The gains, however, are broad-based with every sector positive year-to-date, showing none of the thinness associated with frothy tops. It has also been accompanied by upward moves across global equity markets and asset classes with emerging markets, oil, gold and copper all rising strongly. The danger in this rallying market is that the latest support is coming from talk; hot air can hold up balloons, but it can lift stocks for only so long. Nevertheless, the broad-based advance reflects positive realities – the Fed’s move to an accommodative stance and hopes of a resolution to trade talks.