The first quarter of 2018 had everything from euphoric buying to panic selling. While markets started January with a record-breaking run, February saw that evaporate, and March saw further volatility that led to losses in equities for the quarter. Concerns about rising interest rates, trade wars and overall valuations were too much for crowded and expensive parts of the equity market.
In Australia, the big four banks did the index damage, leading the S&P/ASX200 to a 5.0% capital loss for Q1, the worst quarterly performance since the GFC.
The question clearly becomes: is this the end of the 9-year bull market in equities, or is it a long-overdue correction in equity markets that is a buying opportunity in the right stocks?