The run-up in treasury yields and the flight to safety will be relatively short-lived, says Jonathan Mackay, Executive Director at Morgan Stanley Wealth Management. Too many fund managers were expecting interest rates to rise, says Mackay, and now troublesome news items from China and Argentina have caught them off-guard. He says interest rates will soon resume their move higher once this wave of instability passes. And while the problems in emerging markets do have "crisis potential", Mackay says central banks are better equipped to handle them than in decades past.

Disclosure: TheStreet's editorial policy prohibits staff editors and reporters from holding positions in any individual stocks.

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