Investment Strategy: Volatility likely to linger, but value starting to emerge from broad market weakness
Equities: After a sharp selloff that was prompted by concerns about Chinese growth, equity markets have
started to stabilize with developed markets modestly outperforming emerging ones. Markets should remain
on edge in the near‐term, however, as the Street is becoming increasingly divided on whether the Federal
Reserve will hike interest rates as early as September 17 (next FOMC meeting) or push out rate hikes into
early 2016. So long as global growth remains intact and valuations stay reasonable, we don’t think medium and
long‐term investors should fret about potentially higher short‐term rates in the U.S.