Q3 2022 Global Markets Review & Outlook

Inside, you will find a summary of market activity and our market outlook.

• Global Markets Look Primed to Recover: Global markets reflect well-known fears and the likelihood of severe economic problems above and beyond what is already priced in seems low. Meanwhile, positive economic factors continue to be largely ignored.
• Dour Investor Sentiment Supports an Unexpected Recovery: Depressed sentiment, driven by concerns on inflation, global monetary policy, China’s lockdowns and a variety of other factors has significantly lowered investor expectations, allowing room for reality to exceed expectations, spurring a new bull market.
• Global Markets Typically Reward US Political Gridlock: The incumbent party routinely loses power during midterm years, reducing political uncertainty and the likelihood of extreme legislation. Increased gridlock is largely underappreciated by investors and likely acts as a tailwind for global markets going forward.