Risk markets in January rebounded from a choppy December, starting the year off with healthy gains across global equity markets. Interest rates closed the month exactly where they began, with 10yr UST yields at 4.58%. There were no significant economic surprises last month. Payrolls grew 143,000 and unemployment ticked back down to 4% while core PCE inflation (2.8%) remained above target but within the range markets were expecting. Sources of volatility during the month included DeepSeek, a Chinese technology company, unveiling cheap and effective AI technology to challenge their U.S. counterparts. Lastly, markets wrestled with a daily diet of uncertainty from the new Trump administration with respect to fiscal priorities, immigration policy, and global trade wars which will take time and patience for markets and investors to navigate.