Anxiety about impending rate hikes as well as a tapering in asset purchases by the Fed to combat inflation led to the worst monthly performance for U.S. equities since March 2020, with the S&P 500® down 5% in January. Smaller caps performed even worse.
International performance was also disappointing, with the S&P Developed Ex-U.S. BMI down 5%. The S&P Emerging BMI, down 1%, fared slightly better, aided by strong performance in Latin America, although headwinds included Ukraine-Russia tensions as well as the Fed’s hawkish stance.
Given the risk-off sentiment, Dividend and Value strategies led. Growth was the laggard, down 8%.