From Equity Research
Following an impressive 2019, equity investors were greeted with a range of challenges to kick off the New Year ranging from geopolitics to health concerns. The U.S. air strike in early January targeting an Iranian official added to turbulence in energy markets that had been striving to reach a better supply/demand balance. These concerns were overshadowed later in the month with the emergence of the coronavirus outbreak spreading through China and beyond. Adding in to the mix the ongoing political uncertainty from the impeachment trial and it is not surprising that the VIX volatility index or “fear gauge” spiked from about 12-13 in early January to reach multi-month highs in the 18 range by month-end. For the full month of January, all three major equity indexes declined with the Dow Jones Industrial Average down 0.99%, the S&P 500 index down 0.16%, and the smaller cap weighted Russell 2000 down 3.26%.