Markets review (January 2026)
- Strong markets across the board since the beginning of the year
- The news that Kevin Warsh is Donald Trump’s nominee hit markets, particularly commodities linked to the USD
Strong markets across the board since the beginning of the year The news that Kevin Warsh is Donald Trump’s nominee hit markets, particularly commodities linked to the USD
News that are moving markets today
New Central Bank Appointee
- Kevin Warsh:
- Dove with a history of hawk
- Willing to decrease the Fed’s balance sheet
Most likely reasons for correction
- Valuations (equity markets multiples, tight credit spreads, bubble valuations on some comms)
- “The first guy through the door looks like a fool, until everyone else follows”
Not much has changed
- Macroeconomics are looking solid
- Equity market valuations are rich but
- EMs offer opportunities
- Europe continues to outperform
- Switzerland is doing its job (protecting the downside)
- Spreads are tight. Choose low duration and higher quality. USD is likely to continue to depreciate
- Gold in panic mode but to be hold in every portfolio
Our Asset Class View
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