Given investor sentiment, a downturn could be on the way

Equity markets are in the red and headlines are screaming with stories about an implosion resulting from a global slowdown.

Nonetheless, in the face of numerous market challenges, equities still continue to be attractive, especially when compared to most other asset classes. However, we know equities are exceedingly sensitive to investor sentiment. Keeping that in mind, a downturn can certainly be envisioned. But once you have filtered out some of the noise, the latest correction is quite 'normal' for equity markets, though it probably feels outsized given the lull in volatility of recent years. Asia's maturing debt market, cheap Japan and the global equity rally Some have sought to benefit from the cur...