Markets experienced an extremely volatile week as a tremendous amount of headlines were exchanged throughout news outlets. The IMF lowered its global growth forecasts to 3.7% down from its 3.9% estimate in April. Hurricane Michael reached a Category 4 and made landfall in the Florida Panhandle after shutting down 40% of daily crude production in the Gulf for preparation of the calamity. Trade data from China helped ease concerns of a slowdown in global growth as well as initial advisement from U.S. Treasury Secretary, Steven Mnuchin, against China being a currency manipulator. Third quarter earnings reports began on Friday with bank stocks posting strong results which was a relief to many that corporate profits might not be significantly lower this time around.
In a Friday trading session 30% above average volume, the U.S. large company index gained over 1% to help mitigate the worst week of losses since February. The extended days of continued declines was the longest in almost two years. U.S. small company stocks declined the most during the week while all major equity indices across the globe ended in the red. Fixed income investments experienced some reprieve as yields lowered from the spike last week but still above levels from a month ago. Alternative, diversifying strategies similarly fell during this hard hitting time but in a less spectacular fashion than global stocks.
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