Forward contracts (derivatives) are pricing in big increases in emerging market interest rates. Investors are expecting that interest rates will significantly increase in the major emerging economies and that it will choke the fire in emerging market equity markets which are leading the rebound in global markets. Dont worry. The big picture macroeconomics are solid and all this fear around a correction is driven by just that, fear. Stick to the plan investors. We keep investing in the market leaders in the stalwart sectors within faster growing economies and look for every opportunity to build positions and lower our average price per share.
Exactly
Recent Comments