- We moved the equity weight of the BMO Income ETF Portfolio and BMO Conservative ETF Portfolio further underweight equities during the month, in recognition of the additional volatility.
- We have closed our U.S. Industrials position, completing a full rotation into U.S. Energy that we initiated during the summer. Continued expectations of constrained supply, and sustained demand despite concerns over any first quarter 2024 economic slowdown remains our base case.
- We have been nibbling away at longer-term bonds, reducing our underweight duration position, with an eye to overweight.
A Month of Two Stories
As we look to year-end, the short-term set up for a bounce in equity markets is in place, but we remain cautious of the yet-to-be-determined impact of the sharp surge in rates, and whether the Fed will feel the need for one more hike or if we have truly seen the end of rate increases.
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