- We have found numerous undervalued opportunities among U.K. stocks, European cyclicals, and Japanese exporters.
- Widespread economic expansion may continue to drive non-U.S. markets, though U.S. policy developments are likely to pose global risks.
- Post-election enthusiasm may be enough to keep U.S. corporate profits strong, but progress from Washington would certainly provide additional support.
When measured by index milestones and investor optimism, the first quarter was a stellar one for U.S. equities. The market rally that began on the heels of the U.S. presidential election remained intact through February before retreating somewhat in March. The Dow Jones Industrial Average surpassed the 20,000 level in February, and the U.S. bull market observed its eighth anniversary in March. Outside the United States, stocks surged upward in the quarter, both in developed and emerging markets, as economic growth strengthened around the globe.