The final quarter is often one of instant reinforcement of both winners and losers. How will it go this time, once the Fed has thrown the knucklebones? Will Evergrande’s partly politically-inspired demise be smoothly handled – if only in a manner that satisfies Xi’s insatiable lust for power? Will the Vaccine Wars further undermine social harmony and hinder economic progress? How will the burgeoning energy crisis – bastard child of misguided climate polcies – play out as winter approaches? All will be revealed in due course.
While stocks have generally tended to offer better returns than Treasuries, it has not all been plain sailing for equity investors. Intriguingly, the last 50 years’ ups and downs share more than a few similarities with the first half of the last century. Could that uncanny resemblance continue to hold henceforward?