October tends to be one of the better months for markets and this October was no exception. Developed market equities registered a healthy return, although emerging market equities fell with Chinese indices coming under pressure. Bond markets ended the month where they started after a period of volatility. The European Central Bank (ECB) raised rates by 0.75%, taking the main deposit rate to 1.5%, in line with expectations as part of the measures to tackle high inflation. This marks the second such rate rise following a decade of 0% or negative rates. In what some are interpreting as a less aggressive stance, ECB President Christine Lagarde noted that whilst further rates will be needed to combat near double-digit inflation, much monetary tightening has already been done and the recent slowdown in economic growth needs to be taken into consideration. There are signs that the market is working its way through many potential threats. Elevated volatility will likely remain and hence remaining diversified is critical to getting through this period in an orderly fashion.