Markets & Economy

The Economy: April 2016

The Economy: As of April 2016

04_Market UpdateU.S. GDP increased at just a 0.5% annual rate in the first quarter. Along with the subpar pace of expansion, corporate earnings are lower than they were at the same point one year ago. However, the stock market appears to be looking past the current troubles, towards the latter half of the year when profits and growth are expected to rebound. The S&P 50 has returned 1.74% year-to-date, but there is broad dispersion among sectors. Energy, utilities, and telecom are all up over double digits, while technology, healthcare, and financial stocks have suffered losses. Fixed income has provided impressive returns through the year’s first four months, with investment grade bonds up 3.43%, and high yield gaining 7.40%