Buyers start to de-risk portfolios as macro backdrop deteriorates

Equity markets suffered record-breaking falls during ‘Red October' as a cocktail of risks - including concerns over the Fed's tightening cycle and FAANG valuations - took their toll sending the S&P 500 to a record loss of 6.9% for the month, its worst month since September 2011. Volatility subsequently spread into other markets with the MSCI All Country World index suffering its worst month since May 2012, dropping 7.6%, while the MSCI Emerging Markets index plummeted 8.8%, its largest monthly fall since August 2015. The rout in the FAANG stocks continued into November with Facebook d...