The selloff in global equity markets continued overnight with markets in Asia down between 3% and 4%, and in America the S+P 500 Index down 3.09%. These falls in values mean that essentially the gains built up within markets during the year have now been given back, but we do not believe we have entered a long term Bear Market. Technically, Japan is now in a Bear Market, having fallen over 20% from its 2018 highs, and having registered the markets worse month since 2008. The problems are stemming from rising interest rates, a higher oil price and an unexpected slowdown in US corporate earnings, which have not been as strong as expected for the third quarter. This week’s volatility only serves to amplify what has already been a very unsettling month for global equity prices. However, longer term US economic fundamentals remain robust. Strong job creation and better wages growth is very supportive of household incomes, whilst the fiscal stimulus from the US tax cuts remain strongly supportive of the economy. We believe that markets are underpinned by genuine economic fundamentals, and that, as we have experienced in October’s past, this market shake out will be short lived, and short term, but this volatility may have a few weeks to go yet.