Navigating the headwind

7 November 2018

The slight upward surge in the real interest rate in September triggered October’s equity market movement, just as at the beginning of the year. Once again, the interest rate movement was founded on stronger-than-expected economic figures and fears of the US economy overheating.

A differentiating factor from the January-February situation is that companies’ earnings forecasts are being downgraded and economic activity is becoming more moderate globally. Early on in the year, the trend in the economy and earnings forecast was quite the opposite.