In unfamiliar fashion, bonds ended the quarter in negative territory while stocks posted very modest gains. The period came to a close on a sour note with the dramatic re-escalation of the Greek crisis. In addition to the uncertainty surrounding Greece and the European Union (EU), a slowing China and the impending rate hike here in the US also made headlines. If history serves as any guide, these events should continue to be with us for the foreseeable future.
Returns were generally positive across markets in the first quarter and the strong performance in international markets was a nice change to see. The primary driver of performance at home and abroad continued to be the direct and indirect actions of central banks. The current degree of Federal Reserve watching and forecasting is reminiscent of the Alan Greenspan years when market participants attempted to guess policy decisions by studying the thickness of his briefcase prior to meetings.
