After a rough January, U.S. equities roared back to life with the S&P and the Dow Jones hitting new all-time highs. International diversification is paying off so far this year, and the MSCI EAFE is up +6.50% year to date.

The high yield sector was the only bright spot in the fixed income markets (Barclays Corporate High Yield +2.41%). Meanwhile, the 10-year U.S. Treasury yield backed up 32 basis points to end the month at 2.00%. We think there will be bouts of high volatility this year in fixed income and that liquidity could be key to the direction of bonds in 2015. For more on our thoughts on fixed income, visit’s Strategist Corner for Sean Clark’s latest article.