The Gloves are Off
■ Markets enter the historically volatile fourth quarter with high expectations that global growth and corporate earnings can rebound, neither of which have yet to materialize.
■ Global stocks were pushed around by a nearly constant stream of Tweets from the U.S. President regarding trade with China but ended the quarter with little change. Overall, bonds performed well as yields declined precipitously.
■ Mounting geopolitical stresses—Sino-American Trade War, Fed independence, protests in Hong Kong, Brexit and the Aramco Attacks—have all generally been dismissed by markets.
■ It appears central banks can continue to commit to easy monetary policies even if inflation metrics move higher than stated targets.