In addition to rounding up the week’s important issues in the financial markets, we’ve also added brief thoughts on what effects on wealth and investment management you should watch for, which we’ll continue to highlight each week.

Market Action:

With stocks largely unchanged on the week, rates markets and the Federal Reserve took center stage. In comments today, Fed Chair Janet Yellen asserted that “high-pressure” policy may be the only way to stave off falling economic potential. Her dovish commentary stands in contrast to a consensus retail sales print this morning indicating strong auto sales and suggesting higher inflation. Further, the Fed minutes for their September meeting released on Wednesday stated that not hiking was a “close call”.

Outside of the U.S., markets had a slow news week, though most of the stories suggested sluggish growth. Increasing barriers to trade look likely to slow the global economy, and some commodity exporters have started to retool their economies in response to reduced access to customers and lower prices. China also has begun rethinking its global investment agenda while it tries to attract more investment from abroad. Brexit also continues to look more and more expensive for Britain: the Treasury looks likely to lose up to $82 billion in revenue per year, and the Pound may lose its status as a reserve currency, but the recent slide in the value of the pound at least may have acted as a stabilizing force preventing major short-term contraction in the British economy.

What to Watch:


The Polly Portfolio Team