By Anwiti Bahuguna, Ph.D., Senior Portfolio Manager
Aside from a few days of volatility, markets have risen steadily this year. So how should you position your portfolio in an environment where risk assets may continue to move in lockstep?
Since February, markets have generally been on a steady rise, aside from a few volatile days around the British vote to leave the European Union. But it is important to remember that financial assets are highly susceptible to changes in central bank policy. With the Fed hinting at a rate increase, investors should prepare for the possibility of a taper tantrum scenario in which most risk assets experience negative returns at the same time. With that as the backdrop, here are six areas of the market worth watching in the fourth quarter.
1. Equities - Emerging markets are beginning to outperform
After years of underperformance, emerging market ((EM)) equities are beginning…