Editor's Note: Below is a brief excerpt from today's Early Look written by CEO Keith McCullough. Click here to learn more about the Early Look.
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In the face of our April of 2018 US Dollar Bottoming call are you long of that beautifully synchronized EM (Emerging Markets) pie chart in your P.A.? How about in your client accounts? In what currencies do you own EM debt or equity? If you are, I certainly hope you aren’t overweight Argentina, Indonesia, or Turkey this year. As their fiat currencies move into crash mode, local inflation ramps and their respective economies slow. Evidently Erdogan doesn’t quite get the link between devaluing a country’s currency and inflation #accelerating. This morning he said that he’ll bring “lower inflation because borrowing costs will fall.” I couldn’t make that up if I tried. |
