Rise in Terrorist Activity Adds to an Already Uncertain Outlook for Capital Markets
We Remain Cautious in the Near‐term
Equities: Equity markets are once again in a familiar situation of trying to navigate through opaque conditions. With the recent spate of terrorism added to the list of risks and uncertainties we continue to view the risk/reward proposition as neutral and suggest investors continue to maintain a defensive posture that includes holding above-average levels of cash and focusing on dividend payers. A potential Fed rate hike in mid-December would be positive for the Financial sector (banks, lifecos) and could result in modest weakness for the traditionally rate sensitive Telecom, Utilities, and REIT sectors.
