Bloomberg writes about the rough start to the year for emerging market currency strategists. The story has some great lines:
“Traders either made their year or lost their jobs in the last week,” Douglas Borthwick, the head of foreign exchange at Chapdelaine & Co. in New York said.
Lines like this make me think the worries are way overdone.
“Argentina, Turkey and South Africa led other markets sharply lower in what has the potential to be the most troublesome EM-led correction since 1998,” Michael Shaoul, the New York-based chairman and chief executive officer of Marketfield Asset Management LLC.
There have been many, many rounds of trouble since 1998 and some trouble in a basket-case like Argentina and some others is hardly the kind of thing to panic over.
