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October 9, 2017 |

Entering October, the S&P500 Index is at all-time highs.  The Fed has announced its plans for starting to slowly reduce its $4.5 trillion balance sheet in October and all eyes are now focused on the potential for tax reform.  Markets enjoyed somewhat of a rotation in September as value stocks outperformed growth for just the second month this calendar year, and big tech growth stocks took a little breather. Global markets have continued to shrug off geopolitical events (for the most part), as global growth and more optimism abounds.  It is also worth noting that the recent Catalan secession movement has had only a local effect on Spanish markets. Despite subtle tensions between the U.S. and China, in particular over North Korea, the Chinese market continues to show signs of growth. Emerging Market equities suffered their first monthly loss of the year in September with a 40bps pull-back, but are still up nearly 28% year-to-date.  Investors will pay close attention to any potential ripple effects in the Emerging Markets caused by U.S. Fed rate policy.  Otherwise, EM still remains the most attractively valued of the equity spectrum.