Bouchey Financial Group 1st Quarter Market & Economic Review
Market Overview
Investors started 2014 very skittish after two years of strong performance in the markets in 2012 and 2013 and with the bull market reaching its 5th year in March of 2014. As seen in Exhibit 1 below, this uncertainty manifested itself with a sharp decline in the markets in the 1st quarter due in part to weakness in emerging markets and a particularly cold winter. Although the rest of the year was a steady stream of unexpected global crises including the annexation of Crimea by Ukraine, the spread of Ebola and the significant growth of ISIS in Syria and Iraq, the U.S. economy showed a level of fundamental strength not seen in years. This strength, particularly in the labor markets, allowed the S&P 500 to have 9 months of positive results with the final performance for the year showing a gain of 13.68% when dividends are included.