Developed Markets Resilient as Emerging Markets Struggle

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  • Developed markets have demonstrated awe-inspiring resilience in the face of emerging market struggles.
  • Emerging market currencies are plunging. U.S. monetary policy is partly to blame but the true culprit is China.
  • U.S. interest rate hikes are likely to be gradual. Investors who exit bonds may miss income opportunities.
  • Energy sector problems cloud the Q2 earnings season. It could be the first quarter of negative growth since Q3 2012.
  • Despite China’s recent selloff, keep in mind that volatility may be rewarded.

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