Going forward, we expect the economy to show positive year-on-year and seasonally adjusted rates in the quarters ahead, but the 1.8 percent Central Bank estimate appears to have more downside than upside risk at the moment.

We think that with the risk of surprisingly tight U.S. monetary policy diminishing as the U.S. economy decelerates, and with the peso strong, the scales are tipped to a 50bp east at the January meeting.

We still see lower rates later in the year, but for now, with the economy growing at about trend and in a balanced manner, there are few reasons for policy to be altered in either direction.

The U.K. economy will probably perform under trend again next year. The pound will fall early next year.

Besides earning returns, we're making a positive impact on the economy of formerly bypassed California markets. We have identified three key benchmarks of underserved markets: companies that have limited access to capital, companies that employ workers who reside in economically disadvantaged areas, and companies that have female and/or minority management.

The fundamentals for European shares are good. A strong economy, good earnings and positive outlooks all combine to make them attractive.