Market Review – March 2021

A lot has happened over the past year since the start of the quickest, most violent stock market correction in history.

In this month’s market review, our Chief Options Specialist, Jason Ayres, reflects on the March market conditions.

U.S. markets continued to extend their gains in mid-February. Both U.S. stock market indices managed to find support during the first week of March, however, the tech market was the hardest hit.  

The S&P TSX composite followed the same general trend. Despite several weeks of choppiness, it’s now outperforming it’s U.S. counterparts year to date.  

The major catalyst for the sell-off was the rapid run up in interest rates, which caught investors by surprise.

Inflation is still below the five-year highs experienced in 2018 and it’s expected to remain under control as unemployment returns to pre-pandemic levels.

There is some positive hope that investors are betting are the economy and society in general is getting closer to some sense of normalcy.

The VIX is now sitting at the lowest levels since before the pandemic. This doesn’t mean it’s going to be smooth ride, but it could mean investors have more confidence and comfort in the road ahead.