A TALE OF TWO REGIONS

Over the last quarter, global markets were up about 3%. But it’s a really a tale of two regions if you want to call it that: the US was up by 7% but at the other end of the spectrum, emerging markets went down 2%. So, there’s a really large spread between the outcomes for the different regions.

The other thing that characterized the market over the last quarter was rate hikes. The Fed has been talking about rate hikes for a while but the markets are starting to believe there is going to be a lot more of them in 2019.

10-year yields push up and that flowed through to US dollars, which also ultimately affected emerging markets over the quarter …

Full October report here.