Scratch an investor, and you will find two models. One is a fair value model, perhaps based on free-cash-flow or earnings expectations, or breakup value. The other is based on liquidity. We suspect that the latter is overwhelming the former in the emerging market equity space. The ECB and BOJ are easing policy aggressively. The …
Great Graphic: Bullish Emerging Market Equity Index Read More »
The eurozone finance ministers have accepted the EC’s recommendation that Spain and Portugal not be fined for their fiscal excesses. A few weeks ago, the EU Commissioner for Economic Affairs, Moscovici explained that punitive actions would strengthen anti-EU sentiment. However, that consideration did not prevent the EU from threatening to cut off part of the …
No Fines for Iberia, but Remedial Action Demanded and Possible Loss of Some ESI Funds Read More »
The robust US jobs report at the end of last week had arrested the down draft seen the previous week in response to the disappointing Q2 GDP report. The mostly sideways movement has given way to a broader pullback today. The greenback is heavier against all the major and most emerging market currencies today. There …
FX Consolidation Resolved in Favor of Weaker US Dollar Read More »