During the past quarter we reduced our allocations in cash and fixed income to take advantage of the pull back in equities that had occurred in September and early October. Within fixed income, we have continued to minimize duration and maintained our exposures to credits. Similarly, on the equity side we also maintained our overweight exposure to financials and energy while reducing our energy overweight a notch to reflect the elevated prices. The key driver of our decisions remains the expectation of a longer and more mature growth cycle where the catalyst for economic growth shifts from the public to private sectors. Importantly, we also expect that supply-side inflation will ease over time from the change in base factors and ramp up of capacity. However, we do expect the demand side inflation will remain stickier. Below, we discuss our outlook and the factors we see as key to driving markets going forward.

We discuss our outlook and the factors we see as key to drive markets going forward below :