This is Exchanges at Goldman Sachs, where we discuss developments currently shaping markets, industries, in the global economy.

I'm Jake Stewart, global head of corporate communications here at the firm.

Today we'll be talking all about the airline industry with Katie O'Brien of Goldman Sachs research,

but before that we're going to get a quick markets update from

Scott Rubner of Goldman Sachs Securities Division who's watching five key numbers in markets right now.

Thanks, Jake. The big number that I'm looking at this week is 671 billion dollars.

This is the amount of money market inflows since January 2019.

We've seen equity positioning very defensive, falling the risk off during the Christmas Eve of 2018.

The wedge is something that we look at on our desk.

It's the amount of money that was allocated to money markets and fixed income relative to equities.

Last year the wedge expanded by $1.5 trillion which shows defensive positioning despite the rally and risk assets.

In fact, in 2019, this was 2.5 times larger than 2008, which was the previous record.

The number that has been getting a lot of attention in markets but doesn't really

tell us what we need to know is 32%.

Over the past 25 years, 32% of the full year's asset allocation takes place in January, the so-called January

effect. We are entering a very strong period of January where the majority of

portfolio rebalances takes place every year.

Going back over the last 30 years, the first two weeks of January see 40% of monthly purchases

and the second two weeks of January see 60% of monthly purchases.

That's into 401k plans, 529 plans, and year-end bonuses.

So for performance, going back to 1985, the average S&P 500 return between January 1st and

January 15th is 40 basis points.

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