Bone dry 2016 for U.S. IPO market

Investors as well as angel investors, private equities are not coming out of the closet yet. January turmoil in financial markets may have broken investors’ confidence bad enough that current market rally is just not being enough to boost sales volume in U.S. IPO market.

Angel investors, private equity players, also not ready to offload their portfolio, amid fear it may not reach intended returns.

Last time monthly IPO volume crossed $ billion mark was back in November 2015.

In December and in January volume was zero. In February it was equally bleaker. Proceeds were just of $300 million and in March so far, it has hit only $100 million.

IPO analysts expect this year to be worst since financial crisis and rate hikes from U.S. Federal Reserve, unlikely to do much good. FED is likely to increase rates twice this year, which is expected to weigh further on sentiment. Moreover weakness in commodities, struggle of BOJ with its policies and weakness in China has kept investors on the sideline.

After dropping to lows around 1810 area, US benchmark stock index has jumped by almost 240 points, currently trading at 2040 area.