Closing the underweight in equities at the end of September turned out to be the right decision. Equity markets rallied by +7% in October. It seems as though the often quoted "peak hawkishness" is now actually materialising.
The interest rate hikes by both the Canadian and Australian central banks were thus lower than expected in October. According to their assessment, the previous key interest rate hikes are now making themselves felt in the interest rate-sensitive areas of the economy (particularly in the housing market).