The third quarter was marked by strong returns, internal turmoil and changes in many longstanding relationships between asset classes. Markets shook off the shock of Brexit and turned in the best performance of the year. Emerging markets, which stumbled in the second quarter, easily outperformed the developed world with Chinese equities leading the charge up 14%. Markets in Europe rebounded as the worst fears regarding Brexit fallout failed to materialize and the ECB expanded its easing program. Equities in the US exhibited their own tilt towards risk with small and midcap stocks both outperforming larger peers. While most equity markets demonstrated a decidedly risk-on preference, the performance of growth stocks when compared to value signaled a more apprehensive outlook.