Please find the next blog in our monthly series that provides a snapshot of the markets and the state of the economy.
- Equity markets surged in October as strong earnings countered worries about inflation and weaker growth
- US GDP rose a weaker-than-expected 2.0% in the third quarter, with consumer spending constrained by virus fears and inflation
- Developed market yield curves flattened as traders anticipated the end of ultra-loose central bank policy
- Global Equities (ex. EM) still outperforming bonds year-to-date
- Fixed income falls as short- and intermediate-term rates rise
Asset Class Valuations
- Equities still favored over bonds
- Non-US equities favored over US equities
- Equities, H.Y. bonds, R.E. provide an inflation hedge
Inflation Expectations Rising Again
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