Financial markets around the globe continue to reflect vulnerability. Vulnerability in political discourse, in trade discussions, in agreement on climate change, and, most recently, on the strength of the US economy. Large scale protests in Hong Kong speak of a populace that no longer trusts the system of representation. UK Prime Minister Johnson, similarly, prorogues parliament in order to circumvent the normal checks and balances leading up to the October Brexit deadline. And all of this while the Zondo commission in South Africa enters its 180th day. No wonder then that businesses have scaled back on new hires and new capital projects. In looking at the most recent dynamic of the "repo" market at the Fed, we are concerned, particularly in light of the ever-increasing funding shortfalls that sent overnight rates in the US as high as 10 percent. These global forces impacted equity markets in early September through a marked rotation away from "momentum" and "growth" to "value" as p:e multiples in the former contracted rather sharply.

We remain defensively positioned with a high cash weighting and a position in gold while monitoring positioning in each of the quality stocks held in your portfolio.