The themes have not changed significantly since last month. The FOMC September meeting will be upon us in two weeks. This will be the focal point of market attention. The second key theme is still China stocks. The economic story for China has turned negative with more focus on the overall growth. This focus will continue whether the Fed acts or not. Associated with these two themes are issues of liquidity and volatility. Volatility has returns to financial markets and investors have been surprised by the significant intraday movements. This volatility is tied to the uncertainty concerning the Fed and the implication of a global growth slowdown lead by China. Liquidity is coupled with volatility. Investors will learn whether the market can sustain continued selling pressure.
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