Editor's Note: Below is a brief excerpt from today's Early Look written by Hedgeye's Daryl Jones. Click here to learn more about the Early Look. 

In our Chart of the Day below, we highlight Turkish 5-year CDS. It has reached levels not seen since the global financial crisis in 2008.  Ultimately, Turkey’s ability to issue more debt, or refinance her current debt, may be the "True Master" of whether it can easily resolve this current economic crisis.

The larger issue for investors is confidence in emerging markets may falter more broadly.  If volatility of currencies in other emerging markets is any indicator, such as South Africa (rand was down 9% on Monday) and India (currency hitting all-time lows), this is an important risk investors should keep front and center.

CHART OF THE DAY: Trouble --> Turkish 5-Year CDS - 08.14.18 EL Chart

CHART OF THE DAY: Trouble --> Turkish 5-Year CDS - early look