March Madness …

March 16, 2015

March madness is upon us – excitement, victory, and heartbreak … not unlike the markets!

Markets were quite volatile last week as they dropped for the third week in a row as pallid economic data and declining oil prices rattled investors. A slew of less-than-expected economic data hit the markets last week: U.S. retail sales fell for the third straight month, the Produce Price Index (PPI) fell 0.5% in February against an expected gain of 0.3%, Consumer Sentiment came in at 91.2 against an expected reading of 95, mortgage applications fell in early March, and oil prices plummeted to a nearly 6-year low. Perhaps the weather impacted a number of these data points, but it is tough to be encouraged by the overall tone of announcements. But all is not lost … a few positives from the markets and economy last week include initial jobless claims of 289,000 in early March along with relatively strong earnings reports. Most S&P 500 companies have reported quarterly earnings, and 68% of companies have reported better-than-expected results.

For the week, the Dow Jones Industrial Average finished at 17,749 to close down 0.56%. The broader-based S&P 500 closed at 2,053 for a loss of 0.80% for the week. The Nasdaq Composite closed the week at 4,872 for a drop of 1.10%. International markets fared even worse as the Dow Jones Global (ex US) Index dropped 2.06% for the week. The 10-year Treasury closed the week at a yield of 2.13% (down from 2.24% the prior week) as bond prices rose due to falling oil prices, troubles in the Eurozone and abnormally low yields overseas.

Chart 3.16

As always, we urge investors not to get caught up in the day-to-day noise of the markets. Instead, focus on long-term goals, and enjoy the gift of each day. Spring is almost here …

Happy St. Patrick’s Day!

“Failure to prepare is preparing to fail.”  –  John Wooden