The equity market showed surprising resiliency in the third quarter, even in the face of unexpected political changes. Case in point: The UK’s unexpected decision to exit the European Union had a limited impact on equity markets in the region.
That said, there are still many challenges, such as:
- The sluggish pace of global economic activity
- Persistent restraint in the pace of business investment
- Rising global political uncertainty (e.g., Brexit, the recent U.S. presidential election,
- December’s Italian referendum and France’s upcoming presidential election)
- Low interest rates
Learn more in the video below about why our research leads us to believe conditions will improve in the fourth quarter.