October was a month of two halves. The rally in risky assets that has been fuelled by central bank liquidity and signs of growth continued during the first two weeks before a significant bout of profit-taking set in. We do not expect the sell-off to turn into a rout. Admittedly, many riskier asset classes are now looking stretched after their gains this year. But the favourable policy backdrop and the improvement in the economic data should persist over the next few quarters.
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