Rates have gone up, and bond prices have gone down, since the election
Over the past several weeks, interest rates have moved up significantly. Higher interest rates are a reflection of a stronger US economy and renewed optimism on the part of investors.
Through the end of September, the economy as a whole stayed strong. Global markets have mostly recovered from the decision by the United Kingdom to leave the European Union thanks to the recovery from emerging market countries such as Brazil and China. The United States’ economy is growing as well.
Our second quarter update comes with cautious optimism about the outlook for the US economy and the markets. Continued strengthening in the US economy paired with a rebound in energy prices have led the markets to new highs despite political uncertainty across the globe. Interest rates remained unchanged in the United States, while Japanese and European banks began to feel the effects of negative interest rates. While uncertainty related to the election and interest rates could cause volatility in the markets over the next quarter, we expect the global economy to continue to strengthen gradually. (more…)
Market Volatility Presents Buying Opportunity
Special Market Update October 2014
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