Emerging market equities outperformed in August, while commodities recovered and European equities lost some of the ground they had gained over the summer. Despite all the talk of emerging market outflows, the reason that traders started looking at lower quality, alternative assets remains: it’s hard to make decent returns with U.S. and European equities right now. Emerging markets holding stable Over the last few years U.S. and European equities market have been rough simply because the recession had knocked the wind out of everyone’s sails. Now, with promising second quarter results, the problem is that so many traders have gone…