In the 4th Quarter Capital Markets Outlook, we review how investors can navigate these possible outcomes, as well as a host of other issues. Chief among them are two timely topics at the top of many investors’ minds: the U.S. midterm elections and the flattening yield curve.

Markets are nearing a crossroads. The most likely path from here is a world in which growth slows, but that slowdown serves to bring a global economy that had been running above-trend down to earth. The economic cycle extends and market returns remain solid. But there are other, more dangerous potential worlds, too: one in which geopolitics or other factors cause growth to drop off dramatically, and another in which interest rates move much higher much faster than investors currently expect.

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