February 2023 Monthly Review

Jordi Visser

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February rekindled many investor fears about 2022. January inflation and jobs data were higher than expected, and the Citi economic surprise index had its largest monthly gain since September 2022. At the start of 2023, a recession was the largest fear, so strong data was interpreted as a positive. However, continued strength increased the fears of a Fed rate hike, which impacted global markets. 
 
The SPX finished February down but remained above the levels at the start of the year. Within equities, technology was the best-performing sector, and energy was the worst. Rates were up sharply for the month across the curve, and 2yr yields had their largest monthly increase since September 2022. The rise in yields drove the dollar higher and commodities lower. Despite investor fears, there were some positive signs. International stocks were strong, with the DAX and Eurostoxx both up for the month. Credit spreads and equity vol barely moved, and factor moves were muted. Despite mixed moves in the market, January’s signs of HF re-leveraging persisted, with the GS VIP hedge fund index outperforming the SPX for the second month in a row.

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Important disclosures: Disclosures: This content (the "Insights Page") is provided by Weiss Multi-Strategy Advisers LLC ("Weiss"). The views expressed on the Insights Page are for informational purposes only and are subject to change without notice. Information on the Insights Page has been developed internally and is based on market conditions as of the date of the original post on the Insights Page from sources believed to be reliable. Nothing on the Insights Page should be construed as investment, legal, tax, or other advice and should not be viewed as a recommendation to buy or sell any security or adopt any investment strategy. Past performance is no guarantee of future results. Please consult your own advisers regarding business, legal, tax, or other matters concerning investments. Weiss has no control over information at any external site hyperlinked on the Insights Page. Weiss makes no representation concerning and is not responsible for the quality, content, nature, or reliability of any hyperlinked site and has included hyperlinks only as a convenience. The inclusion of any external hyperlink does not imply any endorsement or ongoing monitoring by Weiss of any hyperlinked site. Investing in securities is speculative and involves substantial risk of loss.