US Equities – Investor Nervousness Intensifies

Although Wall Street continues to boast outperformance against competing asset classes YTD for 2018, there are signs in the market that investors are growing nervous when it comes to US equities. Posting the first quarterly loss since 2015, the end of Q1 2018 has seen the S&P stumble from its stellar 2017 consistent upward climb – falling 1.2% into March end.
Pessimists await bubble bursts as leverage surges higher. Meanwhile optimists highlight that the bull run of the past year was over-extended and moderate falls are to be expected as part of normal corrective market behaviour. In any case, investors have shown some caution in their allocations into March – demonstrating significant cooling in ETFs. At the same...