Q1 2014 Client Letter
So how will the market start a new year? This question was especially concerning this year given that 2014 began with the U.S. equity markets at a 5 year high. During the first quarter the market faced three major risks, each of which had the potential to cause havoc for investors. Of these risks two were known from the outset – the unfinished story of how the Fed will unwind its massive easing of monetary policy, and the questions over the sustainability of growth in corporate earnings. The third risk only became apparent when Russia reclaimed Crimea from the Ukraine.