A Warm and Fuzzy February

Monthly Market Snapshot: February 2019


The warm and fuzzy feeling towards global equities continued in February. In the U.S., the S&P 500 climbed by 3.3% and the Dow Jones powered ahead with a 3.7% gain. Outside of the U.S., performance in Europe was solid with a 3.6% gain while Japanese shares lagged. Emerging market stocks added 1.1%.

Even though U.S. economic data are signaling a moderation in growth, a more cautious Federal Reserve and improved U.S. – China trade relations have helped to boost equities. With the S&P 500 up over 11.0% year-to-date, the pace of gains may moderate, but we believe that stocks still have some room to run in this business cycle.

Citi’s Private Bank’s Global Investment Committee (GIC) is maintaining its overweight to global equities (+2.0%). Key overweights include allocations to both U.S. large-cap and emerging market stocks (particularly emerging Asia). The Committee remains neutral on global fixed income, but sees opportunities in both short-duration U.S. investment grade and emerging markets debt. The Committee remains deeply underweight on most European and Japanese sovereign bonds.