I think all emerging markets are going to be hit by the tightening trend that’s especially developed in the Anglo-Saxon economies (Oz, UK & US).
After all cable at 1.70 is at multi-year highs and currency strength is going to favor GBP & USD especially as there is pressure on higher yields (and restructuring of shorter term interest rates) in US treasuries.
The asynchronous nature of the economy where the flow of capital is beginning to redirect away from emerging markets (and even Japan, the EU & Switzerland) back to the days of the infamous carry trade is invariably going to hurt growing (but inefficient) markets like India, China & Africa.
Risk-return metrics are the basis for good investment and why accept moderately higher yields at substantially higher risk levels.
– See more at: http://marginalrevolution.com/marginalrevolution/2014/06/are-currency-movements-and-capital-outflows-the-relevant-lever-for-china-problems.html#comment-158239633
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Brown Pundits Archive
Razib Khan is a Bangladeshi-American geneticist and writer. He is co-founder of Brown Pundits and runs Unsupervised Learning, a Substack on population genetics, evolution, history, and politics with more than 55,000 subscribers, alongside the accompanying podcast. He has blogged at Gene Expression since the early 2000s.
His writing has appeared in The New York Times, The Guardian, National Review, Slate, India Today, Quillette, and UnHerd. He is Director of Operations at FUTO in Austin, Texas, and co-founder of GenRAIT, a life-sciences platform company. Earlier in his career he developed ancestry algorithms for Gene by Gene, the Genographic Project, and Insitome, and was among the first employees at Embark Veterinary.
Born in Dhaka and raised in upstate New York and eastern Oregon, he holds degrees in biochemistry (2000) and biology (2006) from the University of Oregon, and undertook doctoral work in genomics and genetics at UC Davis. He lives in Austin.
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