Asset Allocation Outlook September
August is traditionally a month in which little happens on the financial markets. According to market wisdom there’s no point in coming back until September, but this year was an exception to the rule. The MSCI global equity index posted a gain of 6.0%. Japanese equities rose in price by as much as 8.2%, followed by US equities at 7.0%, with European equities and emerging market equities lagging far behind with pluses of 3.4% and 2.1%. The positive climate for risky assets led to tighter spreads on Southern European government bonds, Investment Grade and High Yield credits and emerging market debt.