EB Market Update – May 2015
Global – Do global markets need a QE reality check?
Global equities managed a positive return for the month in dollar terms with U.S. markets reaching all-time highs before slipping back on a plethora of disappointing macro-economic data which suggested that U.S. economic recovery was faltering. The S&P 500 returned 1.29%, amid posting an all-time high during the month. Investors continued to view equities as the preferred investment option in spite of stretched valuations as bonds and cash delivered record low returns.
Domestic (sell in May and go away?)
The saying has perhaps an element of truth in it as the local stock market came under considerable pressure at month end with the JSE/ALSI closing lower on nine consecutive occasions eventually closing down 3.95% in total return terms. Key economic indicators released in May resulted in increased market volatility with the ALSI 30 day volatility increasing from 10.43 to 11.20.
