Quarterly Letter
Equity markets delivered solid gains during the third quarter, propelled by significant upward revisions to corporate earnings prospects, low interest rates, and a US Federal Reserve policy announcement suggesting that interest rates will be kept low for the foreseeable future. COVID-19 case counts remain elevated and economic conditions generally remain pressured, but recent data has been trending better than consensus expectations. As stock markets appear to be discounting further economic improvement, they continue to be led by a small group of highly-valued "new economy" stocks that are discounting aggressive long-term growth – a reality that may be difficult to achieve.
