It was a tough third quarter for investing. Most major asset classes, except for bonds, saw price declines. The sell-off in global risk assets was initiated by a sell-off in Chinese A shares. These are stocks of Chinese companies that are owned and traded within China that have limited ownership by outside investors. The shares experienced a major run-up over the past year, and the sell-off sparked fears of a major contraction in Chinese growth, capital flight, and a devaluation of the Chinese yuan. Other markets across the globe sold off in anticipation of the contagion effects this might have on the global economy and asset values. In October, markets have rallied back as China fears have moderated and the potential
for a Federal Reserve rate hike have diminished.
On a quarterly basis, Hirtle Callaghan publishes our perspective on the current market. We have included the first page of that piece below. If you would like to receive the full perspective, please contact us.