For U.S. stocks, the bulls continued to lumber through the second quarter, largely insulated from Greek volatility. However, all eyes remain fixed on the Fed’s anticipated future rate hike.
This issue explores some of our thinking concerning the combined impact of the oil price decline with further downward pressure on interest rates.
While most of 2014 was relatively calm, the sharp drop in oil prices and a one-day “flash crash” in the Treasury market in October offered investors a somewhat wilder ride at year-end than they had experienced earlier.
Small-cap and large-cap performance diverged sharply during the quarter, indicating that the U.S. business cycle may be near a mid-point in the economic expansion.