Weekly Market Commentary 04/13/2018

Over the long run the financial markets respond to evolving economic fundamentals – growth, inflation, jobs and earnings, to name the most notable. But as has been dramatically evident since the start of the year, short-run gyrations in asset values are usually driven by external events that tend to erupt sporadically and unpredictably. While the fundamentals remain positive in our view, it is hard to recall another time when so many external shocks have been packed into so short a period. Hence, even as the markets last year were as tranquil as any time since the 1960s, they have been equally as volatile over the first quarter of this year. That erratic behavior has continued through the first two weeks of April, as the bolts from the blue keep on coming.