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Geopolitics aside, economic data outside the United States displayed modest improvement based on ‘flash’ purchasing manager surveys for Europe and Japan, which pointed to stronger activity, Quantitative easing (QE) by the European Central Bank (ECB) and Bank of Japan (BoJ) have supported both economies, although recent signs of soft inflation may indicate both central banks should inject additional stimulus. This latest global economic commentary discusses a number of updates in equity, commodity and fixed income markets worldwide.

It is a common understanding that when investing in international assets, there are two sources of risk, first, the volatility that comes from the underlying asset itself (typically equities or bonds) and second, the volatility of the currency in which the international asset is denominated versus the base currency of the portfolio.

In March 2014, the Chinese Government announced the launch of its National New Urbanization Plan. The plan will transform China and will present opportunities in almost every sector—health care, entertainment, construction, energy, urban planning and many others. The New Urbanization Plan is a key part of the Government’s economic strategy, which seeks to rebalance the economy away from reliance on investment and exports and toward growth led by consumer spending.

Industrial robots have been in use for more than 50 years. Today, a convergence of technological advancements, with economic and demographic trends, is leading to the adoption of robotics far beyond automotive assembly to include a wide variety of industries. Many governments have made Robotic and Autonomous Systems (RAS) a strategic initiative for economic growth.

With a significant number of private equity groups (PEGs) working to succeed in this market, it has become increasingly difficult to identify targets poised for significant growth based on financial analysis alone.

Debt continues to grow. In U.S.-dollar terms the debt of states, corporates and private households has increased by roughly 50 percent since 2007. This rise has led to concerns about a renewed debt crisis. A closer look reveals that both the growth and composition of debt differs between regions. Also, countries vary in their ability to take on and service debt. Should these be areas of concern?

The SEC has issued a new risk alert on cybersecurity that registered broker-dealers and investment advisors need to follow closely. The SEC’s Office of Compliance Inspections and Examinations pointed to six broad categories in the alert, which was released on September 15.

Looking back on a calendar year in which the S&P 500 outperformed the rest of the world by nearly 18% percent, many U.S. investors are perhaps wondering why they should venture outside of their home market. Add recent headlines from abroad, including talk of geopolitical instability, a Greek exit from the Eurozone, and a stock market bubble in China, and you start to see investors clicking the heels of their ruby red slippers, hoping for a return home to Kansas.

Effective short selling enhances an investment portfolio’s risk-adjusted returns over time. All else equal, short positions lower market exposure when incorporated into a broader portfolio. Accordingly, the long/short approach generally reduces volatility and improves capital preservation over a full market cycle. The use of shorts in a portfolio typically gives long/short managers a competitive advantage over long-only investors, who are more dependent on rising markets to generate returns.