If rates keep going higher, that will pose some problems to sizeable chunks of the stock market, particularly financials and other areas that are interest-rate sensitive.
I don't see a lot of value in emerging-market bonds. They've probably seen their best levels for the year and perhaps for longer than that.
Whether retail money is going to rotate back into the market in a huge way is the key. My guess is it's not going to happen.
There is a risk that if China liberalizes the foreign exchange system when the banks need to be recapitalized, there could be trauma in the system. My impression is that the Chinese are going to be as gradual as they can.
It's not unexpected. We think it's a healthy move.
Stocks will probably hit a wall in the next couple of months, unless we move closer to the Goldilocks scenario.
I take great pride in the integrity and quality of our product, which often reflected non-consensus calls, even within the bank.
We could talk about sunspots, we could talk about fiscal year-end effects, but whatever the explanation may be, history is on the side of the fourth quarter being a good one.
The deal is a clear sign that it still pays to be overweight Mexico and we expect to see more upside.
That would be a positive. Some of the world's excess capacity would be ameliorated.
