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HomeWealth Management Monthly Market Update: 3 Things You Need to Know

Monthly Market Update: 3 Things You Need to Know

Many equity markets saw their best month of the year (including the S&P 500), whilst commodities led the way. Here are 3 things you need to know:

  1. Real GDP growth slowed substantially in the 3rd quarter to a 2.0% annual rate, after 6.5% growth in the first half of the year. Recent data points to a pick-up of economic momentum for the 4th quarter.
  2. Core CPI inflation for September rose to 4.04%. Core inflation was boosted by rapid shelter inflation— which ran at the highest level since the housing bubble.
  3. Less growth, more inflation = ☹. Short-term rate markets are pulling forward expectations for when and how quickly major central banks will start to lift interest rates from zero.

Sources:

  1. Sources: J.P. Morgan Asset Management – Economic Update; Bureau of Economic Analysis (www.bea.gov); Bureau of Labor Statistics (www.bls.gov); Federal Open Market Committee (www.federalreserve.gov)
  2. Indices:
    • The Barclays Aggregate Bond Index is a broad-based index used as a proxy for the U.S. bond market. Total return quoted.
    • The S&P 500 is designed to be a leading indicator of U.S. equities and is commonly used as a proxy for the U.S. stock market. Price return quoted.
    • The MSCI ACWI ex-US Index captures large and mid-cap representation across 22 of 23 developed market countries (excluding the U.S.) and 27 emerging market countries.  The index covers approximately 85% of the global equity opportunity set outside the U.S. Price return quoted.
    • The MSCI Emerging Markets Index captures large and mid-cap segments in 26 emerging markets. Price return quoted (USD).

Disclosure: BFSG does not make any representations or warranties as to the accuracy, timeliness, suitability, completeness, or relevance of any information prepared by any unaffiliated third party, whether linked to BFSG’s web site or blog or incorporated herein and takes no responsibility for any such content. All such information is provided solely for convenience purposes only and all users thereof should be guided accordingly. Please see important disclosure information here.

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