In Review

The 3rd quarter ended with strong returns across most major asset classes, despite several bouts of volatility. Weak U.S. economic data and an interest rate hike from the Bank of Japan hit stocks particularly hard in the month of August. However, the long-anticipated start of the Fed’s rate cutting cycle, improved labor market data, and the announcement of extensive new stimulus measures in China helped to ease investor concerns and support a rally in risk assets into quarter end. Easing financial conditions across the globe alongside continued progress on inflation and cyclical resilience has strengthened the case for a soft landing. However, a sharp deterioration in growth conditions, a global election cycle, and heightened geopolitical tensions still pose risks to the current benign macro environment.

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