Major Indexes All Significantly Higher in March





Janet Yellen - United States of America - Federal Reserve chairwomanThis year got off to a horrible start for investors after the major North American indexes all fell by at least 11%. It seemed as though the bloom had finally come off of the rose after a staggering multi-year run for the markets and that the bear had finally sunk its claws back into the DJIA, NASDAQ and S+P 500.

Market bears were set up for disappointment, however, after the major market indexes all reversed strongly into the end of the quarter. March was a particularly strong month, as the DJIA gained 7.1%, the NASDAQ rose 6.8% and the S+P 500 increased by 6.6%.

Thanks to the strong end to the quarter, the S+P 500 and DJIA both finished Q1 higher, while the NASDAQ ended the quarter down 2.8%.

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The Federal Reserve was the main reason why the markets were up in March, as investors were somewhat caught off guard by the Janet Yellen's dovish comments. This led to a weaker US dollar and stronger oil prices, both of which should translate into improved earnings for many of the biggest corporations in the United States. Corporate earnings had been savaged recently by a stronger US dollar, and a weaker dollar will benefit many companies, which should lead to higher share prices.

Investors, many of which had unloaded some or all of their positions during the 10%+ decline earlier this year, are now left to wonder if they should jump back into the markets with both feet. After all, the market has made fools out of cautious investors over the past seven years, and people will be loathe to miss out on another leg higher in the markets.

Bears, however, are still warning about the dangers of China, stressed sovereign balance sheets and geopolitical strife.

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Are you jumping back into the markets in April, staying put or paring down your positions?

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Photo: Fiscal Monitor




Filed under: General Knowledge

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