The Great Moderation?
One week after we received a strong U.S. employment report, which led to concerns about returning inflation, investors learned that inflation slowed in September.
If employment remains strong and inflation continues to improve, what does this combination mean for interest rates and stocks between now and the end of the year?
In this week’s update, we tackle these questions and then look at how the election and lower rates may influence future moves for the record number of investors who remain on the sidelines.
Key Takeaways
- Lower inflation and healthy growth are positive for markets
- A significant amount of money remains on the sidelines
- The conclusion of the election and lower rates may be catalysts to bring money off the sidelines and into risk
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