Investment Commentary
The combination of sluggish economic growth at home, negative interest rates abroad (see chart below), and concerns about the upcoming Brexit referendum were taken by investors to mean that Fed Chairwoman Janet Yellen was likely to be cautious about further rate increases in the immediate future. Prospects of slower-than-expected Federal Reserve rate hikes helped to fuel a modest market rally in April with global stocks (MSCI All World Index) advancing 1.5%. Bonds were similarly helped by expectations of a more patient Fed and the Barclays Aggregate Bond Index gained +0.4% in April.
 By far, the largest market gains during the month of April came from commodities with the Dow Jones Commodity Index posting its largest monthly gain (+9.1%) since 2010. Impediments for commodity prices over the past five years such as weakening demand in China, a glut of oil and gas supply, and a strengthening US dollar have begun to subside in 2016. Economic growth in China appears to be stabilizing due to increased stimulus, US crude production is slumping, a weaker US dollar is boosting demand for commodities, and unfavorable weather in South America has threatened grain supply - all catalysts for higher commodity prices.
We encourage you to call or email us if you have any questions about the markets or your portfolio. As always, you can reference the RPG Monthly Market Snapshot by clicking here for some key economic data points and index returns.
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