Cliff Notes - Happy 10th Birthday Bull Market
March 13, 2019
In This Week's Update:
- China lowered its 2019 target growth rate at its annual National People’s Congress and announced fiscal stimulus measures, including cuts in its value-added tax rates for businesses. China trade data came in weaker than expected, and the U.S. goods trade deficit rose to a record high in 2018. The growing U.S. trade gap looks likely to influence ongoing U.S.-China trade negotiations.
- The European Central Bank lowered its 2019 growth forecast, announced it would keep interest rates on hold until at least the end of this year, and said it will provide a new wave of cheap funding for European banks to spur lending. The announcement sent European bond yields lower, while the euro weakened against the U.S. dollar. The Bank of Canada also held interest rates steady.
- Global stocks fell. Quality stocks outperformed momentum. Government bond yields declined globally. Global PMI data showed some improvement. February U.S. jobs growth disappointed.
- This week marks the 10th anniversary of the current bull market that began on March 9, 2009. The S&P 500 index has generated a total return of 401%, which is 17.5% annualized, ranking in the 94th percentile of 10-year annualized returns since 1880. Wowza!