The stock market rally that started in late December 2018 continued its torrid pace during the first quarter of 2019 with US markets recording their largest first-quarter advance in nearly a decade. Every economic sector posted positive gains led by mega-cap companies in the Information Technology sector. Unfortunately, we believe it was largely relief that central bankers would hold rates lower for longer to support growth that drove the market, as opposed to confidence in the global economy. Just a few months ago, the odds of three market-halting interest rate hikes in 2019 was a near certainty. This foregone conclusion was thoroughly eviscerated on the last business day of the quarter when an advisor to the President publicly suggested the Fed should lower interest rates by half a percent “as a precaution” against threats to the US economy. It would seem that this cautionary note from the administration, coupled with a yield curve that is beginning to whisper recession, places the burden on any future advancement in stock prices squarely on the shoulders of corporate earnings - barring, of course, a dramatic shift in the multiple investors are willing to apply to future earnings.
The Saratoga Large Cap Growth Portfolio posted strong absolute performance, though a limited number of stocks centered in the Health Care, Information Technology and Communications Services sectors led to relative underperformance.____________________________
Information contained herein was obtained from recognized statistical services and other sources believed to be reliable and we therefore cannot make any representation as to its completeness or accuracy. Any statements not of a factual nature constitute opinions which are subject to change without notice.
Investors should carefully consider the investment objectives, risks, charges and expenses of the Saratoga Advantage Trust mutual funds. This and other important information about the Saratoga Advantage Trust's funds is contained in the prospectus, which can be obtained by clicking here, or by calling (800) 807-FUND, and which should be read carefully before investing. The Saratoga Advantage Trust's funds are distributed by Northern Lights Distributors, LLC, member FINRA/SIPC. Saratoga Capital Management, LLC is not affiliated with Northern Lights Distributors, LLC. 4/19 © Saratoga Capital Management, LLC; All Rights Reserved.