A variety of important developments occurred in the third quarter of 2015:
- The U.S. economy continued at a lukewarm pace, with improvement in employment rates but lackluster participation and wage growth.
- Inflation remains near zero in the U.S., but is in a normal range excluding food and energy. Inflation rests near zero in developed countries.
- Risk markets remain expensive relative to history, though August’s selloff resulted in improved valuations.
- Decelerating growth in China has had far reaching impacts. However, milder growth and decreasing fiscal stimulus are in line with China’s hoped-for transition to a consumption-oriented economy.
- The U.S. dollar further appreciated against emerging market currencies – particularly against the “fragile five” currencies.
We invite you to read or hear more on these topics and our views on economic trends and marketplace valuations in our Investment Landscape, as well as our topical viewpoint on the origins of the Federal Reserve, by accessing the following links: