Emerging market stocks continued its strong run in September bringing its YTD gains to 61.5%. REITs which I touted as being safe to get back in 2 months back, registered another good month. Developed markets equities ambled along. Nothing new here, with the G20 committed to an easy money policy, the equity markets broadly should be supported still. Watch for upticks in commodities as that has languished for most of the year. Commodities have more to pick up when real capital spending and global trade recovers. The fact that it has not moved much tells you that globally the recovery, especially in developed markets is slow, and that the producers still have some inventory levels to work down. Emerging markets vibrancy alone cannot tilt the scale. To me, we are in the 6th inning in a 9 innings baseball metaphor rally. The following legs will kicked in when developed markets equities start to really gain steam.
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