I have no doubt some clients logging onto their websites may be wondering what is happening in the markets. Basically, bond yields have risen following strong European data and the relative undervalue of government debt vs cash as the expectation of the US to raise rates heightens. This has affected Emerging Markets; traditionally money leaves Emerging Markets both across equities and bonds with a US rate rise. There is not a lot of chance of rate rises in the UK or the Eurozone. However the bond sell off has triggered a recent equity drawdown; the FTSE has lost 2.8% over the past week and the DAX (German index) is down 11% from its peak. There is no need to be concerned on this movement, we view it as short term and, if anything a buying opportunity as equity markets give up a portion of their gains year to date.