- Global markets sold off following further evidence of China slowdown as evidenced by unexpected devaluation of the yuan, further commodity price declines, and tighter credit conditions.
- Equity markets recovered some of the sell-off following the European Central Bank’s announcement that they will likely expand quantitative easing at the March review and the Bank of Japan’s move to drop overnight rates into negative territory.
- Safe assets represented by investment grade bonds and dividend-paying stocks outperformed all other segments. Precious metals, led by gold, were the strongest performers.
- Global diversification remains critical in this uncertain investment environment as trying to ‘time’ absolute and relative performance remains a challenge in a macro-driven market.
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