• After rising 1.5% in December and finishing the year 24% higher, the global equity market roared out of the gate in January climbing 5.5% and notching its best start to a new year since 1994.
• Emerging market equities lead the way, rising nearly 10% before finishing the month up 8.2%. That brings its 12-month return to 41.3%, its best since April 2010.
• With the exception of emerging market equities, volatility edged slightly higher around the globe in January, but remained in a historically low range. The VIX reached its highest level since August.
• In the US, consumer discretionary stocks lead all sectors, rising 9.2% on the month, while interest-rate sensitive utilities lagged as the majority of the yield curve pushed sharply higher.
• The Fed left its interest rate unchanged at its Jan. 31 meeting, but noted that, “Inflation on a 12-month basis is expected to move up this year and to stabilize around the committee’s 2 percent objective over the medium term.”
To learn more, download the full commentary at MRIC.com.