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RATES ARE IN THE DRIVER’S SEAT




The third quarter was relatively benign for financial assets as volatility remained subdued, equity markets grinded towards new all-time highs and interest rates steadily tracked higher. Strength in the dollar revealed cracks in emerging market equities and bonds, but for the most part, the Summer doldrums lived up to their name despite media concerns surrounding tariffs, peak-profits, mid-term elections, and whatever other headline became the flavor of the day. We have been adamant that investors ignore the geo-political risks that litter the front page and focus on interest rates, as they pose the largest risk to financial assets - both “risky” and “safe.”

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