Newsletter Q1 2014

The first quarter results broke from the steady and above average returns of 2013. As we expected, volatility increased significantly and we experienced a 6% correction in February followed by a move up to record high levels before a slight retreat at quarter-end. Volatility increased due to several concerns:

1. Emerging markets economic slowdown and currency weakness
2. The Federal Reserve/tapering
3. “Elevated” equity valuations
4. Mixed economic data
5. The upheaval in Ukraine, which led to a roller coaster ride in the equity markets