A 'meaningful correction' is 'necessary and overdue'

Focus on healthcare and energy

clock • 2 min read

US stocks suffered their first quarterly decline since 2015 for the three months ended in March as volatility returned to the market after an extended hiatus.

The threat of inflation and accompanying higher rates, as well as growing tensions over US trade policy, were the catalysts that knocked equities out of their upward momentum. Coming into 2018, we expected we would see a more normalised market environment with volatility returning to average levels. Increased volatility is beneficial as it provides more opportunities to take advantage of temporary dislocations. Volatility can also help offset the risks of higher rates by damping down bullishness.  Unlike the market correction in early 2016 that was driven by fears of global deflati...

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