Investors continued to focus on rampant inflation and, in turn, potential changes in monetary policy settings.
By month end, five interest rate increases in the US had been priced in to markets; a more aggressive tightening in policy settings than had been anticipated previously.
These evolving expectations saw bond yields rise in all major regions – resulting in negative returns from fixed income markets – and
spooked share markets. Major equity indices in the US, Europe and Australia all closed January substantially lower.
The investment market volatility that kicked off in March 2025 has felt like a punch, particularly for those in or nearing retirement.
Global markets whipsawed following the “Liberation Day” tariff announcements on April 2, and subsequent developments throughout the month. Volatility was rife and trading volumes were robust.