Last month we said it – the Fed is not the bully. But as rate hikes continue, it sucks money out of China and other Emerging Markets into an ever stronger US Dollar. We’ve seen Turkey’s debt downgraded, several Asian currencies tumbling to record lows, and calls for economic war. Rising oil prices also add insult to injury for emerging markets with higher oil prices leading to a higher import bill and widening current account deficit.
1. How priced in are EM troubles?
2. When will headwinds impact US markets?
3. Will the USD steamrolling continue?
Join us as we introduce a new scenario on EM currency destruction, and assess Trump’s claims of currency manipulation by China + Europe.