Inside, you will find a summary of market activity and our market outlook.
Volatility cut both ways in Q3, lifting global equities to new year-to-date highs at July’s end before a late-quarter pullback set in. While negative sentiment could keep weighing on equities in the near future, we think the bull market’s backdrop looks bright. Economic conditions appear better than most everyone expected, gridlock continues sapping legislative risk, and broader EM data has shown resilience. Better still, year four of the US presidential cycle lies ahead, extending political tailwinds globally through 2024 at least. With politics largely gridlocked throughout the developed world and sentiment broadly dour, reality has a low bar to clear to beat expectations.