The S&P 500 index experienced its first down quarter since 2015 on concerns about the rise in interest rates, a potential trade war with China, and privacy issues with some of the leading technology companies that may lead to increased regulation. The S&P 500 fell 2.68 percent in the month of March and was down 1.2 percent in the first quarter, excluding dividends.
Volatility has also returned to the markets with the S&P 500 registering six trading days of plus or minus 2 percent moves compared to zero in 2017. The Dow Jones Industrial Average (DJIA), more specifically, saw swings of minus 724, plus 669, minus 345 and plus 254 in the last few days of March.
Interest rates have moved higher as the yield on the three month U.S. Treasury Bill rose to 1.73 percent from 1.39 percent at year-end, while the ten-year Treasury yield rose to 2.74 percent from 2.40 percent over the same period.
TJT Capital Group’s InVEST Risk Model® has helped our clients participate in bull markets and protect capital from the devastation of bear markets by focusing on 5 indicators that really matter when it comes to determining the health and direction of markets. The following is the most recent update.