The first half of 2013 has shown that investors may be more resolute in their risk aversion than previously thought. At first, the markets seemed to shrug off continued concern about the Eurozone and volatility in both equity and bond markets. But by mid-year, the markets realized that a rising interest rate environment and a pullback of asset purchases by the Federal Reserve would soon be on the doorstep.

The first reaction to this news was large redemptions from both emerging markets and income-sensitive assets. While this may have been a short-term correction in asset prices, it could signal struggles ahead.

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