Please find the next blog in our monthly series that provides a snapshot of the markets and the state of the economy.
- US GDP grew at a better than expected annual rate of 2.6% in Q3 following two straight negative quarters
- US inflation surprised to the upside with Core CPI rising to 6.6% from 6.3%, solidifying expectations of another 75 bps Fed rate hike in November
- Mixed returns as markets weighed inflation and policy outlook
- US Stocks outperformed; Emerging markets, bonds lagged
Asset Class Valuations
- Equities appear fairly valued across markets
- Favor investment grade credit over high yield
- Cash yields remain attractive
Key Risk Factors We Are Watching
- Inflation and labor market data
- Tightening financial conditions
- Downward revisions to corporate earnings
- Ongoing geopolitical tensions
- Regulatory policy shifts (US and China in particular)
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