After a difficult September, investors enjoyed a respite from the grueling downturn in the capital markets. Global stocks surged on a wave of optimism as investors absorbed third quarter corporate earnings and hoped that the Federal Reserve and other central banks would slow the pace of monetary tightening. Fixed income again created headaches for investors as interest rates continued their upward trajectory. The yield curve remained inverted with short-term rates higher than long-term rates, a recessionary signal that has led to a rush of new money into cash and short-term fixed income.