Investment comment

During an unruly third quarter, stock markets lost ground amid pronounced volatility in share prices; indeed, during the normally quiet month of August, combined trading volumes in equities and derivatives reached record levels. Meanwhile, the prices of assets perceived to offer refuge, such as higher-quality government bonds, increased sharply. The price of gold rose by 7% over the quarter, despite a pronounced decline in September, and the cost of gold's storage escalated after a surge in demand left London, the centre of the bullion market, short of vault space. In currency markets, the Swiss franc appreciated dramatically against the dollar and the euro, before intervention by the Swiss National Bank effectively pegged it to the latter and undermined its allure.