## Will equities catch up with commodities and real estate?
## Confusing first quarter for investors
Investing is never easy as the first quarter once again underscored. The first three months of the year were characterized by an increasingly synchronized recovery in developed markets, a firm earnings season and multiple eye-catching headlines of turmoil in emerging markets (EM) – Thailand, Venezuela, Turkey, Ukraine, Russia and China, just to name a few.
Remarkably, this environment translated into clear outperformance for commodities, more volatility than direction in developed equity markets and only modest underperformance in EM assets. Stressing that we live in uncertain times has long lost its shine as an excuse for temporarily misunderstanding markets. Yet it is prudent to explore less “fundamental” reasons for the behaviour of investors over the last three months.
## Markets influenced by investor sentiment and positioning