Emerging Market Currencies Continue Risk-On Trade
Risk comes from not knowing what you're doing. --Warren Buffett
I've previously written about the behavior of emerging market currencies, specifically as an indicator of risk-on and risk-off sentiment. In a recent column, "For EM Currencies, It Could Be Time to Buy," I noted that the early stages of an uptrend may be taking place consistent with prior post crash-like periods, which are also strong environments for risk assets and risk currencies. I wrote that this was happening in the face of further monetary easing by various emerging markets -- which should theoretically cause weakness, not strength, the latter of which is what appears to be under way. I concluded that a continued rebound may be in order, thus making a potential near-term winner out of a short U.S. dollar, long emerging-market currency trade....133 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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