IN THIS ISSUE

• Macro Strategy — Twin Deficits Shrinking: Policy shifts are reshaping global market leadership, helping to boost performance especially in Emerging Markets as stronger growth, improved fundamentals, and progress on reducing U.S. deficits contributes to a new pattern of outperformance.
  
  
• Market View — Three Lessons from January's Market Jitters: Despite a choppy January marked by renewed volatility and ongoing geopolitical, political, and policy uncertainty, Equities have remained resilient.
  
  
• Thought of the Week — Leadership Churns into 2026: A powerful pro‑cyclical rotation beneath the S&P 500's move toward 7,000 has driven strong gains in value, cyclicals, non‑U.S. Equities, and Small-caps, supported by improving global growth expectations and resilient low volatility despite rising political and geopolitical uncertainty.