Both our growth and inflation readings increased at the margin over the month leaving the Investment Clock firmly in Overheat. The Investment Clock has been in the ‘Overheat’ phase of the economic cycle for the best part of a year. This phase of the economic cycle has historically supported commodities, which have been the strongest performing asset class year to date. This phase also tends to see central banks hike rates to cool an overheating economy. Over the past few weeks, we have heard a number of Fed speakers come out in support of another rate hike despite uncertainty after the US presidential election. However, while the Fed is on track to raise rates in December, central banks in Europe and the UK seem keen to keep their options open and maintain an easing bias.