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Market Review
The third quarter continued to be dominated by concerns about global growth levels. Monetary policy began to diverge the US, Europe, Japan and China. Meanwhile, numerous emerging markets were in political transition.
The focus in the US was on the declining participation labour market, sparking debate as to whether unemployment levels are cyclical or structural. In her semi-annual report Janet Yellen reasserted that there remains plenty of slack in the labour market. This cyclicality argument is supportive of continued low interest rates. The counterargument; more people are leaving the workforce creating a tighter labour market, leading to potential sharp wage inflation and a move in interest rates. This left markets...
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