August 2015 Commentary

Year-to-date while oil markets and the FOMC have dominated financial-related headlines, two other stories that potentially expose the outlook of the global economy and financial markets to significant risk, slowing Chinese growth and declining forex reserves, rose to the top of the pecking order and hurt investors during August. Neither of these stories were new, but markets had shrugged off their potential implications until they couldn’t, and the catalyst for that revision was the Clouseau-esque nature by which the Chinese tried to boost their markets, exacerbated by the regulation-driven illiquidity of post global financial crisis trading. The results were swift and startling.

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