The IMI Risk Appetite Index fell from 41% in December to just 15% in January. December’s reading was a 44-month high and a result of the reaction to the election results.

Macro and fundamentals are expected to continue to drive equity gains while the change in Fed policy has become a major headwind following the December meeting. The political environment shifted to a positive influence in December, the first time in 44 months, before switching back to negative in January.