EUDG - Focus On The Fed Series: Global Equities

2024-02-01 22:20:00 ET

Summary

• While the U.S. has seemingly been a persistent outperformer, many investors would be surprised to know that European equities have actually outperformed the U.S.
• If we were going to focus on an outlier for equities since the Fed began its tightening cycle, it has been in emerging markets.
• One of the most interesting facts about global equity returns has actually come from the drivers of total return.

By Bradley Krom

At the end of every year, it’s important to take stock of what worked and what didn’t. However, before investors get too focused on calendar year returns, it’s also important to assess where we are with respect to monetary policy.

On March 17, 2022, the U.S. Federal Reserve kicked off a dramatic tightening cycle from zero to 5.25%–5.50% in order to bring down inflation....

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