The move to safe havens may have begun

Daily commentary
While the emerging markets are getting a bit of a reprieve today, it bears noting that the move to so-called safe haven assets and currencies has begun. This suggests to me that George Magnus’ warning about this emerging markets crisis must be heeded. I believe a key component to the selloff’s ending will be better economic data out of China as the interest rate hikes taken in several EM countries have not had a beneficial effect. Bonds will continue to rally until the EM crisis has been decisively dealt with. More thoughts below.
Is it a crisis?
I am still on the fence regarding the severity of the emerging markets crisis. My general view is that the economic outlook in the new G3, the US, Europe and China, is positive enough to overcome ill effects from the emerging m...

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