Global equities as a whole were buoyed by the US, with the MSCI All Country World Index posting a return of 4.28% in Q3 and a year-to-date return of 3.83%.

A larger appetite for US equities and a hawkish Federal Reserve meant there was less demand for fixed income.  The yield on 2-year US Treasury bonds rose 29 basis points to 2.81, bringing it ever closer to the yield on 10-year Treasury bonds, which rose 20 basis points to 3.05. The Bloomberg Barclays Global Aggregate Index (unhedged US dollar) fell -0.92% in Q3, bringing its year-to-date return to -2.37%.

As we move into the final stretch of 2018, there are a few things we are keeping a close eye on, including trade and its impact on the developing world, the yield curve and monetary policy.  We also game out a few post US midterm election scenarios.

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