Despite record profit growth in the US, global stock markets sold off in October. Investors recognized that rapid profit growth is seldom sustainable and began to discount the effects of tightening monetary policy that is exposing late-cycle cost pressures. The underperformance of cyclical sectors across markets also confirmed worries about slowing economic growth, especially in China and the US. These growth concerns, exacerbated by the strong US dollar, pushed nearly half of global stock markets to one-year lows.