October 2015 Commentary

Back in mid-August, China frightened markets with unexpected market interventions, serving to damage the majority of investors and asset classes. Then one month later, in mid-September, the FOMC heightened those fears and the market’s decline by implicitly blaming China as the reason the FOMC didn’t hike rates. Then during the following two to three weeks, enough China-calming statistics were released enabling “bad to become good again”, especially when weak U.S. September jobs data came out at the beginning of October. Sprinkle on a dash of short-covering and year-end performance chasing, regardless of the fundamentals, and you had the recipe for a good October. The S&P 500 index had its fourth best October since 1928 and one that more than erased all of Q3’s decline.

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