“You’ve got to accentuate the positive, eliminate the negative and latch on to the affirmative, don’t mess with Mister In-Between” In keeping with the lyrics of a WW2 era Bing Crosby / Andrews Sisters hit song, it was very much a case of “glass half full” in financial markets during the first quarter, as a temporary truce in the Congressional budget squabbles, Japan’s (late, but forceful) arrival on the QE bandwagon and continued favourable data from the US and China were the main focus of investors’ attention. The performance of other asset classes suggested a somewhat less rosy outlook, however, with core sovereign bond yields and most commodities ending the period flat or lower. Meanwhile, an Italian election in which a self-proclaimed stand-up comedian attracted more than a quarter of votes and a badly botched rescue plan for Cyprus – one of the smallest member economies – provided a reminder that the Eurozone’s problems have not gone away.
MitonOptimal (Guernsey) Qtr 1, 2013 - Market Commentary
