This rising penetration of financial products and services will, according to Ross Teverson Head of Strategy, Emerging Markets, forge dramatic change in developing regions of the world, in turn creating opportunities for investors.

The US bull market is officially the longest on record since World War II surpassing the 1990, 2000 and 2007 peaks. It is hard to imagine the music won't skip a beat in the face of rising rates, shrinking central bank balance sheets, curtailing liquidity, trade spats, wage inflation risks, and emerging market credit concerns.

According to Christopher Gannatti, Head of Research, WisdomTree, the lesson here for investors is the potential to embrace volatility. Where a rising VIX typically equates to a short-term equity sell-off, EM investors who have used the dips as buying opportunities historically have seen positive results.

Market developments in May saw some trend reversals across the fixed income and commodity space. On the one hand, the unfolding of the Italian political crisis coincided with a rebound of U.S. Treasuries during the second half of May. On the other hand...

With monetary tightening expected, investors will need to consider the sensitivity of their equity portfolio to sovereign bonds and protect it as far as possible through active stock selection and sector allocation.