The path to higher asset prices during the third quarter was eventful and at times dramatic. An historic spike in volatility in early August led to a swift decline in stocks that ended almost as quickly as it began. Fears of an economic hard landing earlier in the quarter receded as data on consumer spending and employment suggested a downturn was not imminent. The Federal Reserve began to lower interest rates, while Chinese authorities turned on the stimulus spigot. Tensions rose in the Middle East, while the U.S. Presidential election was rife with twists and turns few could have predicted at the beginning of the quarter. Nonetheless, global equities moved higher with several markets closing out the quarter at or close to all-time highs. Bonds and diversifying assets also delivered good returns. It was a fruitful quarter for most asset classes.
