Investment Management – First Quarter 2015
There is an old saying that history never repeats itself, but it rhymes. As we emerge from another weather-influenced slowdown in the U.S. economy, investors are trying to gauge if weaker economic data is a signal of something more ominous. While the loss of economic momentum can be dangerous, we believe the situation rhymes with last year, and the slowdown will be temporary.
Lower earnings estimates caused equity volatility to increase during the quarter. Major indices, such as the S&P 500 and Dow Jones Industrial Average, finished relatively flat for the quarter, which concealed strength in other areas of the equity market. The total return for the Mid-Cap S&P 400 and Small-Cap S&P 600 was 5.31% and 3.96%, respectively.