April Appreciation

Monthly Market Snapshot: April 2019


Stocks continued to rally in April with global equities rising by an additional 3.2% - marking the fourth straight month of gains. In the U.S., both the S&P 500 and NASDAQ hit record highs with monthly gains of 3.9% and 4.7%, respectively. Outside of the U.S., European, Japanese, and Emerging Market shares returned 4.7%, 1.4%, and 2.0%, respectively. At this stage, the dismal equity market performance in the fourth quarter seems a distant memory.

A static Federal Reserve, progressing U.S. - China trade talks, improving economic data, and better-than-expected corporate earnings have each contributed to recent equity market gains. However, there is still the potential for “showers” moving forward with the U.S. threatening to implement auto tariffs against the European Union and a rising risk that the U.S. - Mexico - Canada Agreement (USMCA) may fail to pass in Congress.

Citi’s Private Bank’s Global Investment Committee (GIC) is maintaining its overweight to global equities (+2.0%). Key overweights include allocations to both U.S. large-cap and emerging market stocks (particularly emerging Asia). The Committee remains neutral on global fixed income.