Market Update – May 2014
“Sell in May and go away” The time tested adage of “sell in May and go away” could yet prove appropriate as both domestic and major global stock markets rocketed to all time highs. One notable exception was the Eurozone where economies are only now showing signs of emerging from a double dip recession and company earnings are slowly improving from a very low base. Continued quantitative easing, manifesting itself in surplus liquidity in the hands of investors constantly seeking yield pick-up, remains a major factor driving investment markets. The levels to which many of these markets have now risen is beginning to seriously question how one can justify current share valuations. Despite weak growth, the U.S. economy contracted 1.1% in quarter one attributed mainly to inclement weather conditions, the S&P 500 reached all time highs during the month breaching... Read More
