Eton Q2 2016 Market Review & Outlook

Our January 2016 commentary suggested “…we are in a transition period between central bank-induced liquidity and eventual normalization of markets. This transition period has been and will continue to be a bit choppy…”

“Choppy” was indeed an accurate description of financial markets in the First Quarter of 2016. The first half of the quarter saw a steep decline in equity markets amid worries over global growth (especially relating to China) and fears that depressed energy prices were creating financial distress that might spillover into other sectors. By mid-February, the S&P 500 Index of U.S. equities was down 10% from its Q1 starting point.