Bad Moon Rising—An October Deja Vu This Way Comes

As we head toward the end of the third quarter, I can’t help but think it feels very similar to last year in many ways. The S&P 500 is near its all-time high at 3000, while the MSCI EM Index and the Topix sit 20% and 15% below their highs and the Eurostoxx is 7% lower, leaving all these indices exactly where they traded a year ago. Growth stocks are still the most crowded part of equity managers’ portfolios – and the love affair may be stronger than ever at this point. But there are important differences too……..