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<p>US real estate investment trusts (REITs) led major asset class returns in March with a 4.4% increase. This follows a <a href="https://www.capitalspectator.com/major-asset-classes-february-2021-performance-review/">strong performance in February for domestic property shares.</a></p>
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<p>* Biden has <a href="https://www.reuters.com/article/us-usa-biden-infrastructure/biden-proposes-2-trillion-once-in-a-generation-investment-in-u-s-economy-idUSKBN2BN13C">unveiled</a> a $2 trillion infrastructure proposal.<br/>* Businesses have expressed <a href="https://www.nytimes.com/2021/03/31/business/delta-coca-cola-georgia-voting-law.html">opposition</a> to Georgia's restrictive voting law changes.<br/>* China's manufacturing growth has <a href="https://www.markiteconomics.com/Public/Home/PressRelease/5eb45da6eedd4c888f4ba73005e22ce1">slowed</a> to its weakest pace in almost a year.<br/>* Eurozone manufacturing output <a href="https://www.markiteconomics.com/Public/Home/PressRelease/42658e41522446138d568ab180beca60">increased</a> to record highs in March according to PMI data.<br/>* US pending home sales <a href="https://www.cnbc.com/2021/03/31/pending-home-sales-fell-over-10percent-in-february.html">dropped sharply</a> in February because of historically low supply.<br/>* Chicago PMI, a regional economic metric, <a href="https://s3.amazonaws.com/images.chaptermanager.com/chapters/b742ccc3-ff70-8eca-4cf5-ab93a6c8ab97/files/mni-chicago-press-release-2021-03.pdf">increased</a> in March to the highest level since 2018.<br/>* The share of the US dollar in global reserves has <a href="https://www.bloomberg.com/news/articles/2021-03-31/dollar-s-share-of-global-reserves-sinks-to-lowest-since-1995">dropped</a> to a 25-year low.<br/>* US companies <a href="https://www.bloomberg.com/news/articles/2021-03-31/u-s-companies-add-most-jobs-since-september-adp-data-show?utm_source=google&utm_medium=bd&cmpId=google">added jobs</a> in March at the fastest rate since September:</p>
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<p><em>Introducing A New Strategy: Global Momentum</em></p>
With the upcoming update of our proprietary strategies, Global Momentum (G.B16.MOM) will be introduced. Similar to the other proprietary strategies, G.B16.MOM will utilize our standard 16-ETF opportunity set that encompasses major global asset classes. However, this strategy will focus on price momentum as a risk-management tool, diverging from the return volatility and drawdown approaches of the other two strategies.
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<p>Despite a general upswing in global markets over the past year, the search for undervalued assets continues. Whether these assets represent value traps or genuine opportunities remains an ongoing debate. However, we have a helpful benchmark: trailing five-year returns.</p>
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<p>* Biden's proposal aims to <a href="https://www.wsj.com/articles/behind-bidens-big-plans-belief-that-government-can-drive-growth-11617118656">significantly increase</a> government spending's share of the US economy.<br/>* Details of Biden's $2 trillion infrastructure plan are set to be <a href="https://www.cnbc.com/2021/03/31/biden-infrastructure-plan-includes-corporate-tax-hike-transportation-spending.html">released today.</a><br/>* A US official describes the buildup of Russian forces near the Ukraine border as "concerning."<br/>* The US 10-year Treasury yield is on track for a <a href="https://www.bloomberg.com/news/articles/2021-03-30/asia-set-for-mixed-open-oil-drops-dollar-gains-markets-wrap?srnd=premium">third consecutive quarterly rise.</a><br/>* Growth in China's services and manufacturing sectors <a href="https://www.scmp.com/economy/china-economy/article/3127703/chinas-economic-recovery-continued-march-driven-surge-service">accelerated in March.</a><br/>* China's currency is experiencing its <a href="https://www.ft.com/content/8fee5f44-0259-4fec-bb40-5dea8cc5064d">largest monthly decline</a> against the US dollar in over a year and a half.<br/>* Brazil, South America's largest economy, is facing significant political and health crises.<br/>* The UK's GDP <a href="https://www.reuters.com/article/us-health-coronavirus-britain-economy/uk-economy-grew-by-stronger-than-expected-13-in-fourth-quarter-idUSKBN2BN0MM">grew</a> more than anticipated in Q4.<br/>* The US Consumer Confidence Index <a href="https://www.bloomberg.com/news/articles/2021-03-30/u-s-consumer-confidence-surged-to-one-year-high-in-march">reached a one-year high in March.</a><br/>* Home prices in the US rose by 11.2% in January compared to a year ago—marking the <a href="https://www.wsj.com/articles/u-s-home-price-growth-accelerated-in-january-11617109259">fastest increase in 15 years:</a></p>
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Last week, we pondered whether a shift in sector leadership was occurring in US equities, drawing from a selection of exchange-traded funds. Consumer Staples Select Sector SPDR (XLP) emerged as a potential frontrunner. While the future remains uncertain, XLP’s significant gains yesterday, continuing last week’s positive trend, raise the intriguing possibility that consumer staples may become the new leaders after a period of underperformance.
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<p>* Biden's focus is on addressing economic disparities in his upcoming policy agenda.<br/>* CDC Director warns of the increasing risk of a new surge in Covid-19 cases.<br/>* Recent studies show Pfizer and Moderna COVID-19 vaccines are <a href="https://www.reuters.com/article/health-coronavirus-vaccines-int-idUSKBN2BL2UW">highly effective</a> after the first dose.<br/>* China is reportedly moving towards building an alliance of autocracies.<br/>* Speculation arises over whether China will begin to <a href="https://www.wsj.com/articles/china-long-a-source-of-deflation-starts-raising-prices-for-the-world-11617015600">export inflation</a> globally.<br/>* Suez Canal traffic is <a href="https://www.cnbc.com/2021/03/29/suez-canal-traffic-resumes-after-cargo-ship-ever-given-is-removed.html">resuming</a> following the release of the ship blocking the waterway.<br/>* The 10-year Treasury yield is currently at 1.77%, marking a <a href="https://www.cnbc.com/2021/03/30/us-bonds-treasury-yield-tops-1point77percent-hitting-14-month-high.html">14-month high.</a><br/>* March saw an acceleration in Texas factory activity, according to the Dallas Fed.<br/>* The US Dollar Index has reached a four-and-a-half month peak:</p>
