- Stocks continued to add to recent gains this week, however China remains a lingering threat to the global economy and financial markets;
- Chinese stocks continue to struggle on more evidence of economic weakness: But while China is struggling, most of the Emerging Market complex is participating in the recent rally; and
- European markets had a mixed reaction to a significant expansion of the European Central Bank's (ECB) stimulus program: By Friday, markets had regrouped and rallied.
Bloomberg provides our point of interest this week, illustrating the problem with predictions with reference to the oil price.
Their chart (link above) shows the points at which various experts, corporations and authorities have stated the bottom of the oil market over the last 2.5 years, all yet to be proved right. If the collective resources of JPMorgan, OPEC member Qatar, and the International Energy Agency don't know when the bottom of the oil market is, how does anyone else stand a chance?
The trick is to ignore the mass of noise and hysteria generated by the industry and trust the evidence that asset allocation and diversification work when left to do their job.
With the recent market pullback if you invested more, great.
If you didn't, don't worry, staying invested in the longer term is right.Market data
|Equity Indices||Value||Weekly change|
|Shanghai Composite Index||2955.15||-3.74%|
|US 10 yr||1.87%||-4.28%|
|UK 10 yr||1.45%||-6.90%|
|Commodities/ Energy||Price||Weekly change|
|Brent Crude Oil||$41.20||4.78%|
|Currency Majors||Value||Weekly change|
|Bank of England||0.50%|
|Bank of Japan||-0.10%|
Prices as at Friday 18 March 2016.