WHAT’S HOT
The New Case For Risk Assets
After experiencing torrid market conditions during the first couple
months of the year, investors eventually moved back into equities
and commodities. Will the bullish momentum continue?
I
nvestors returned to risk assets last
month following the February sell-off.
While the US dollar weakened, globally
developed and emerging equity markets
strengthened, including Brazil, one of
the hardest hit markets, along with oil,
as well as copper. In the short-term, we
can expect some weakening, followed by
further strength.
Commodities come back
A weaker dollar looks to have helped
commodities last month as the
Commodity Research Bureau Index was
able to reach a three-month high of
$178.68. Further, the rally exceeded the
two prior rallies from the past 22 months
on a percentage basis. Together, this
points to an improving outlook for overall
commodities over the coming months.
The index had been in a relatively steady
decline since its most recent peak in June
of 2014, with it falling as much as 50.6% as
of the February low. Weakness at this poi