Emerging Money Daily Audio Call March 2 - When the most dovish voice on the Fed uses language like “continuing a gradual path” in reference to a March rate hike markets should prepare for more Fed rather than less.
Today’s price action tells you that correlations to higher rates and a stronger Dollar are potentially more back in play than we had expected.
EM and reflation assets are reacting to the Fed as we might have expected them three to four years ago or even last year when there was the risk that the tightening cycle could be more severe and impactful for current account deficit and commodity economies.
What should you stay long in this environment?...
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