Commentary International Developed Markets Start Year Strong– For the month of January, developed market index returns were uniformly positive and healthy. The Pacific ex-Japan region and Canada had the highest returns of 5.68% and 3.72%, respectively. The UK and the United States trailed the broader developed market indexes.
Commentary Emerging Markets Outpace Developed Markets in January– Emerging markets in the aggregate and individually posted strong gains for the month, outpacing developed markets. Brazil and Korea had the highest returns of 10.74% and 8.64%, respectively. Russia was slightly in the red, recording a -0.27% return.
Commentary Energy Sector Takes a Step Back– Materials and information technology posted the strongest global sector returns of 7.38% and 4.86%, respectively. Energy gave back some of its gains from 2016.
Commentary U.S. Growth Companies Off to Strong Start In January, domestic growth indices outperformed their value counterparts across the size spectrum. Large cap growth performed the best among the different styles. Momentum recorded a 1.76% return.
Commentary Momentum Posts a Solid Return – In the international developed markets, value indices outperformed growth indices in the small cap space, but underperformed among the large cap companies. Momentum posted a strong return of 3.98%.
Commentary Yields Still Historically Low– Money market funds continue to have very low yields, performing in line with the 3 month T-Bill Index. The yields failed to keep pace with changes in the Consumer Price Index.
Commentary High Yield and Emerging Market Bonds Continue Run into 2017– The returns of deflationary hedges were mostly positive across the board in January. High yield and emerging market bonds recorded the highest returns, echoing returns in the equity markets. Government bonds recovered some of their losses from late last year.
Commentary Gold Shines in January– Inflation-sensitive investment returns were mixed for the month. Gold and MLPs performed well, returning 5.84% and 4.89%, respectively. Natural gas and oil took a step back.
Commentary The U.S. Dollar Continues its Rise– The U.S. dollar continued to appreciate against most other currencies over the past three months. The Japanese Yen, Mexican Peso, and Euro depreciated the most versus the USD over the past three months. The British Pound, Canadian Dollar, and Israeli Shekel strengthened versus the U.S. dollar.