Citation Capital Management

Global Market Report The calendar year 2014 has commenced with some dramatic Capital Market flows. Some are a simple continuation of the 2013 investment pattern of strong equity flows into the G7 equity markets at the expense of EM equity markets. This however has been contrasted by the surprising relative strength of the Government Fixed Income markets and the wide ranging commodity rally. Most analysts had expected the FI and commodity markets to continue their weakness into 2014. What is particularly intriguing is that the Fixed Income markets have outperformed most equity indices, including the S&P 500 which has recently created all time nominal highs with the German DAX Index. The EM markets have struggled badly with aggressive selling in BRICS and other markets such as Mexico and Turkey. Several of these markets are down around 10% for the year. The best performers this year have been precious metals, oil and grains. They are up between 10% and 15% this year alone.