What’s the right multiple to pay for stocks with rates at these levels?
Equities Gain in October.
Amid hopes for a slowing pace of interest rate hikes, equities mainly were up in October as the Dow Jones Industrial Average Index gained 14%, posting its best month since January 1976. US small-caps were among the best performers (+12.1%), followed by US value stocks (+11.5%), and US mid-caps (+10.5%). Bonds were mixed as both high-yield credits and TIPS increased (+3.4% and +1.4%, respectively) while both the US Aggregate Bond Index and 7-10 year US Treasuries fell (-1.3% and -1.5%, respectively). Aside from gold (-1.8%), commodities produced positive returns as crude oil was up 9.6%, broad-based commodities rose 1.6%, and silver gained 0.7%