It has been a rough few months in the stock market especially after the steady rise of stock prices in 2013. At the end of last year, it was my view that 2014 would be a more difficult market, but so far, it has been even choppier than I thought it would be.
The investment pros, as measured by hedge fund performance, have also had a tough time, with negative returns in both March and April. Global hedge fund assets rose to a new record in the 1st quarter, but I would imagine some of those investors are having second thoughts.
The decline in interest rates in 2014 has also been a surprise to many especially in the past few weeks as the economic data, including the sharply higher employment numbers, would typically cause rates to move higher.
The yield on the 30-year T-bond has fallen from the December 31 close of 3.964% to 3.415% early Friday. The yield on the 10-year T-note closed 2013 at 3.026% and is now at 2.618%. So is this the start of a new bond bull market as some are predicting?
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