I was looking at fund manager GMO's quarterly newsletter just now when I was reminded of a recent Russell Napier interview with CNC-TV18 in India in late May.
Now is a time to think of EM as cyclically weak
Before I get into what Napier was saying, let me note that GMO is bullish on emerging markets. And EM has been getting killed, in large part due to the strong US dollar. So it's always interesting to read how a fund manager messages to clients when the calls they make blow up.
Now, the dollar issue is one that was easy to spot and I flagged it with respect to EM in May in a post on why I'm not an EM bull. What's more, the Fed has signalled quite strongly that it doesn't care about emerging markets in making policy. Policy divergence will continue to be an issue until the economic traje...
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Edward Harrison is the founder of Credit Writedowns and a former career diplomat, investment banker and technology executive with over twenty five years of business experience. He has also been a regular economic and financial commentator in print and on television for the past decade. He speaks six languages and reads another five, skills he uses to provide a more global perspective. Edward holds an MBA in Finance from Columbia University and a BA in Economics from Dartmouth College.