January Monthly Market Review

An excerpt from our January Monthly Market Review:

The year opened with another strong month for global equities. Despite wild U.S. tariff swings, covetous intentions over Greenland, and rising tensions with Iran, U.S. equities posted solid gains. Developed and emerging non-U.S. equity markets outperformed the U.S., with emerging equity markets enjoying particularly strong returns. U.S. Treasury prices declined as yields rose slightly across the maturity spectrum. Breakeven inflation expectations also rose marginally, especially over shorter horizons. U.S. investment grade and high yield credit markets rose modestly. Credit spreads remained quite compressed. The U.S. dollar depreciated against advanced and emerging economy currencies in January, extending last year’s declines. Oil prices jumped toward the end of the month on rising tensions with Iran. After surging 64% last year, gold prices rose a further 13% in January, despite plunging nearly 10% in the closing three days of the month. Silver prices followed a similar trajectory, gaining 19% in January despite a 27% swoon at month end.