The quarter started on a positive note as hopes for President Trump's pro-business agenda lifted markets to new records.
The so-called "Trump Rally" took a breather in March. The S&P and the Dow failed to set any intraday or all-time closing record highs, and both indices finished the month in the red, snapping four-month win streaks.
The market was focused on drama in D.C. as the Republican's highly anticipated repeal of the Affordable Care Act failed to get off the ground.
The financial sector suffered its worst performance since before the election as investors worried that Trump's failure to repeal Obamacare would be indicative of his inability to roll back parts of Dodd-Frank. (Ridding the banks of regulation is seen as a positive for the financial sector.)
The Nasdaq, while initially lagging the S&P and the Dow in the post-Trump rally, did finish the month in the green. It has now posted five straight months of gains, and is on its longest monthly winning streak since 2013.
Despite the slight pullback in March, the major averages remain near all-time highs. So, the question becomes what still looks attractive? What stocks still have room to run? And how is the market positioned to perform in Q2?
In order for the market to move higher, Sethi believes companies will have to report growth in earnings. He notes that Emerging Markets and Europe are stabilizing, which is a good sign for the U.S. market since over 40% of S&P earnings come from overseas.