Market Comments: October 2012
The 16 day government shutdown seemed to have little impact on markets, as equities posted another month of solid gains, following a strong September. Emerging market stocks rose for the second straight month, creeping into positive territory year to date, though still well behind those of developed countries. A Federal Open Market Committee meeting in late October came and went without much fanfare, as the decision to leave monetary policy unchanged confirmed what most market participants had been anticipating. With only one meeting remaining this year, it appears very likely that an y modification to quantitative easing will be left in the hands of Janet Yellen, who is taking over as Fed Chairman in 2014. Bond yields continued to drift lower off September highs, with the 10 year treasury yield dropping to 2.54% at month end.