A Time for Caution

The third quarter came in like a lamb and went out like a lion, as the return of volatility hit risk assets hard across the globe. As in previous quarters, emerging market stocks and commodities suffered double digit declines as markets continue to deal with the end of the commodity super-cycle and the mix of structural and cyclical problems reverberating throughout the emerging market complex.  But the big news of the quarter was a catch up in developed markets that had previously appeared impervious to the problems that were festering in the developing world.