In this month’s Global Markets Overview:

  • Asset markets have experienced a considerable sell-off in October. We’ve updated our reports for market pricing to 18 October, so they capture recent events.
  • There has not been a single specific driver of the market action. US-China trade tensions, the disagreement between the Italian government and the EU over the Italian budget, rising geopolitical tensions, and a slowing China have all had some impact.
  • We draw out two drivers, which we think will exert headwinds for asset returns in the next 24 months. First, the global business cycle is gradually maturing and US interest rates are rising. Second, even after recent price falls, markets are still pricing-in good economic conditions over the medium to long term which limits sustainable upside.

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