Trying to Make Sense of Recent Market Movements
Yesterday’s drop of more than 3% in equities generated concerns about experiencing a correction similar to the one that we saw earlier this year. The fact is that the market has declined by about 5% in the last five days, and tech-related shares have lost about 8.5%,...Towards a Policy of Rate Neutrality: Implications for Asset Allocation
Since December 2015 the Fed has raised short-term interest rates eight times (from 0-0.25% where it stood in December 2015) to the current level of 2-2.25%. Analysts anticipate that the Fed will continue raising rates. Actually, the expectation is that the FOMC will...Monetary Policy, Currency Misalignments, and Markets’ Memory: Pausing the Hiking of Rates
Inflows to emerging markets dropped by over 65% between July and August of this year. A strengthening American economy and the growing trade tensions have created a rout in emerging markets which is contributing to currency misalignments in Asia and South America....The Spider of Currencies and Trade: Monolithic Tribalism
Over the course of the next few months, problems in emerging markets may intensify. Here is a list of the primary candidates: Turkey, Brazil, Argentina, and China. We certainly do not have the space to discuss all of them in this commentary, but at least we can touch...Sign Up for Our Publications
