September 28, 2015 - Stocks remain in a correction due to weak global growth concerns and uncertainty around the timing of Federal Reserve interest rate normalization. We remain encouraged by solid economic indicators from the developed markets (US and Europe) while emerging market (EM) data remains disappointing. While we are cautious and recommend patience as this correction unfolds, developed market growth should keep the global expansion on-track. China has room for substantial policy stimulus which should ultimately stabilize EM growth and allow the stock market uptrend to resume. Stabilization in China’s manufacturing data would be a positive market catalyst. We continue to favor exposure to the US consumer and would avoid EM, commodities and deep cyclicals.
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