Last week, interest rates fell in the U.S. as traders became more optimistic that the Federal Reserve (Fed) may not increase rates as much as indicated last month. The Fed speakers changed their tone, focusing on the need to be “data dependent” based on the most up-to-date economic information.
The stock market and global growth will be the two wildcards for the Fed over the coming months. I continue to expect challenges for risk assets as we conclude 2018. Treasury bonds remain the go-to asset class in any type of flight to quality trade.
Wishing everyone a healthy and happy Thanksgiving!
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