Hot money pouring into emerging market shares
The reflation trade is best exemplified by the belief that emerging markets will lead the developed world out of recession. Better hope so or the record hot-money flows into emerging market equities could reverse, giving boring currencies like the dollar a boost.
I retain my well-worn skeptism that it’s “different this time” and a bunch of export-dependant economies will suddenly start exporting to each other in volumes sufficient to offset diminished demand in the US and Europe. Call me old-fashioned…

AUTOREFRESH 













I agree with you, Jamie, but we are currency traders. All we are interested in are relative valuations. And if we buy into the premise of the Bloomberg article, then we should consider going long emerging market currencies.