Markets & Economy

The Economy: October 2018

THE ECONOMY: As of October 2018 

Volatility picked back up in a big way in October, with most major stock markets experiencing between 5 – 10% declines. There wasn’t any one reason investors could point to, but a combination of rising interest rates, potentially escalating trade tensions with China, and the upcoming midterm elections were enough to cause a wave of selling. Yet the underlying economy and corporate fundamentals, especially in the U.S., appear to be on solid footing. Third quarter GDP came in at a 3.5% annualized rate, and yearly S&P 500 earnings growth is tracking at nearly 25%.