October was quite a month for world markets, with many hoping November would be different. Though investors left the trough quickly for the second time this year, October’s losses felt different than February’s. February’s seemed merely ‘technical.’ October’s seemed more fundamental. The immediate context for February’s market losses were 13 months of positive returns, an optimism that the world economy was in a synchronized growth profile, and the reassuring sense that the impact of the new U.S. tax laws were still ahead of us.
The October selloff was different: World economies outside the U.S. are experiencing a material slowdown. China is