In March 2012, we finally saw the market pull back a little after three straight positive months to start the year. Our broad stock market was down about ½% for the month. Small caps and internationals were down a little bit more between 1 ½ and 2%. The market did rebound the last week of April, coming back almost 2% for the best week that we’ve seen in about six weeks.
Concerns were attributed, again, to Europe. Spain’s credit rating was downgraded to BBB+. Our GDP growth for the first quarter was revised down from 2.5% to 2.2 which alone might have caused much more significant damage to the market. March new home sales were higher than anticipated but the weekly jobless claims were a little worse than expected. China’s manufacturing index was week along with economic news out of Germany and France. Our consumer confidence index was slightly lower. It’s still a pretty murky economic picture out there but it’s slightly positive. So the question is, as always, what’s the market going to do next? See the rest of the video for answers and ideas.