It paid to stay home in the fourth quarter as US markets, buoyed by improving economic indicators and a surprise win for Donald Trump, handily outperformed the rest of the world. Domestically, the risk-on trade was in full force amid expectations that the Republican sweep would mean lower taxes, lighter regulation and increased spending – ushering in faster economic growth. Reflecting this new confidence, value stocks greatly outperformed their growth peers. While the Trump victory helped to spur the US markets higher, it took a toll on international markets as uncertainty over the future of trade policies weighed on the economic outlook for countries across the globe. Emerging markets were especially hard hit.