Investor sentiment was fickle during the third quarter, resulting in meager performance for most investable assets. Equity markets echoed the rebound in corporate earnings, reaching new highs during the first weeks of summer. At the same time, bond yields fell to levels not seen in months, suggesting bond markets anticipated slower economic growth. By September surging inflation, the threat of tighter U.S. financial conditions, heavy handed regulation in China and the continued spread of COVID-19 had rattled stock and bond investors. Stock markets suffered large drawdowns while higher interest rates weighed on bond prices.