by Variant Perception | Jul 29, 2018 | Emerging Markets, Featured
We recently published a new white paper on EM Crises. In this report, we look at the history of EM crises. How they unfold, and when they become buying opportunities. EM crises have generated some of the largest market sell-offs in the last 25 years. At the...
by Variant Perception | Jul 19, 2018 | Asia, Emerging Markets, Featured, Framework
Failing to spot the Asian currency crisis of 1997 would have been disastrous for an investor. In the case of Thailand, Malaysia and the Philippines, it took almost a decade for equity markets to reach January 1997 levels again in nominal terms. But, how can you see a...
by David Hill | Jun 14, 2018 | China, Emerging Markets
Our macro-driven model of expected industrial commodity returns (the CRB Raw Industrials Index includes non-exchange traded commodities such as burlap, rubber and lead scrap) has turned persistently negative, triggering the regime to shift to bearish from neutral (top...
by David Hill | Jun 7, 2018 | Emerging Markets, Global Economy
With the rise in the USD, UST yields and LIBOR-OIS, it is key to know where most offshore dollar leverage lies. The top-left chart shows the big picture – worldwide, there is over $14 trillion of USD claims held outside of the US (BIS data). Most of these are...
by David Hill | Mar 16, 2018 | Emerging Markets
EM CPI inflation is at multi-year lows at present (top chart), with a clear divergence between world food prices and EM CPI. Food tends to be one of the main components of EM inflation baskets, on average accounting for a 30% weighting. A lot of agricultural...
by David Hill | Jan 11, 2018 | Emerging Markets, European Economy
On a structural basis, Turkey has consistently been one of the most vulnerable economies to a currency crisis in light of considerable external vulnerabilities, and was flagged again in VP’s September thematic update of our debt and currency crisis framework. However,...
by Simon White | Nov 14, 2017 | Emerging Markets
Each month, we produce a report which we call our Leading Indicator Watch. In it we update all our main leading indicators that give us leads on global growth, liquidity, commodities, US growth, US consumption, US manufacturing, corporate profits, volatility and...
by Simon White | Oct 9, 2017 | Emerging Markets, European Economy
Rate differentials are a key driver of FX moves, and we look at rate differentials by adjusting for the effects of both inflation and embedded risk in the market. We do this by looking at 2y nominal-rate differentials, adjusted for CPI and then divided by the implied...
by Simon White | Aug 5, 2017 | Emerging Markets, Global Economy
The macro-economic landscape has profoundly changed since the financial crisis. Developed markets deleveraged, and emerging markets became the engine of global credit and money growth. The top-left chart from the BIS shows this very clearly. EMEs (emerging market...
