Monthly comment for September 2015

After the extreme volatility of August, September was certain to be a calmer month, but the market is still characterized by fear, and although the VIX is declining, it is still significantly higher than at the beginning of August.

Emerging markets in particular are exhibiting nervousness these days. One factor is that earnings growth in the MSCI Emerging Markets has been flat in recent quarters, partly because investors in emerging-market countries fear that higher interest rates in the US will result in capital heading out of the EM nations and into the United States.

Read more here.