MARKET SUMMARY FOR OCTOBER 2018
A lot has happened in the last month or so. While concerns around Trump’s actions on trade remain, along with uncertainty around what Brexit will mean for the U.K. and Europe, investors have now become very focused on the outlook for U.S. interest rates which have soared recently.
This shouldn’t have really come as a surprise – the U.S. Federal Reserve (the equivalent of our RBA) has for some time, been on the path to winding back the stimulus measures that were put in place following the Global Financial Crisis, particularly as the outlook for the U.S. economy improved.
Nonetheless, for many it’s hard to leave the party while the music is still playing, and the size and speed of the moves seemed to have caught complacent investors off guard. This has resulted in some decent falls across global share markets, both in the developed world (United States, Australia etc) and in Emerging Markets, like China.
It’s hard to know how this all plays out, from here. It remains a challenging investing environment with midterm elections in the U.S. the latest potential issue that must be navigated by overvalued share and bond markets.
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** Source: Morningstar, Inc – www.morningstar.com.au The above is a condensed summary of the full market update. For further details speak with a local Financial Adviser