Overall Market Backdrop, January
– For the second month running, the Emerging Markets and the Asia Pacific ex-Japan regions proved to be a beacon of light for equity investors as they led global equities and were the only regions showing positive returns. They did, however, trade places, with Asia Pacific ex-Japan knocking Emerging Markets off the top spot for the month.
– After flying out of the gate at the start of January, most developed markets lost their head of steam and entered into negative territory as the month wound to a close.
– Defensive assets were on the back foot for most of the month; the 10-year US treasury yield ended on 1.07%, an increase of 14 basis points from the start of January.
– Small-Cap continues to lead the way and be the outperforming factor as it extends its run as best performing factor to four straight months.