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  • Emerging markets investors are a hardy bunch and it's a good job.

  • The hideous declines in many currencies in this asset class have been a serious test of nerves.

  • Since the first sign that the Fed would start turning off the taps back in 2013,

  • every time the market has swooned, investors have hoped it would be a mere bump in the road.

  • Every time though, it's turned out to be much more than that.

  • Lately, these investors have enjoyed a rare spell in the sun.

  • Some have even put their tin hats back in the loft.

  • After a gruesome start to 2016, a series of "maybes" have helped emerging market currencies decline by some 10% from late January.

  • Among the reasons, perhaps the U.S. won't keep on cranking up interest rate as fast as it says.

  • Perhaps the reaction to China's currency devaluation was overdone and the country's economy won't collapse after all, at least not yet.

  • Perhaps that flower show in Tangshang, the one that reportedly brought steel production to a temporary halt,

  • really will succeed in putting a floor under iron prices, perhaps oil will find balance.

  • A lot of these reasons are pretty flaky and even at the time,

  • EM investors pinned some of it on technical factors and strokes of luck.

  • But now, just as some bystanders are deciding to jump into the market, it may be time for a pause.

  • The smart money says we won't go back to the ugly declines we saw at the start of this year,

  • but it also says it's wise to be very cautious, and thankful just for stability.

  • Among the laundry list of risks, the dollar seems to have dropped as far as it reasonably can based on the dovish rethink of the Fed,

  • at least for now iron ore prices are, once again, dropping off a cliff, down by over 20% or so from the recent peak.

  • Political risk is pinching Brazil and hammering Turkey, a nervous central bank is holding back the Korean Won,

  • and it's hard to see how the chance of Donald Trump running for U.S. president can be positive for risky assets.

  • Are we heading for another mini-crash? Probably not.

  • But it's also worth preparing for at least a bump in the road, and getting that tin hat out of storage just in case.

Emerging markets investors are a hardy bunch and it's a good job.

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B1 FinancialTimes emerging emerging market market tin bump

More bumps on emerging market roads | Short View

  • 68 2
    Kristi Yang posted on 2016/05/11
Video vocabulary

Keywords

start

US /stɑrt/

UK /stɑ:t/

  • other
  • Beginning of something in place or time
  • noun
  • First time or place that a thing exists; beginning
  • First opportunity to achieve something, e.g. a job
  • Sudden action or movement because you are scared
  • verb
  • To do, be or happen for the first time; begin
  • To turn something on
interest

US /ˈɪntrɪst, -tərɪst, -ˌtrɛst/

UK /'ɪntrəst/

  • other
  • (of money) accumulate as interest.
  • noun
  • Best or most advantageous thing for someone
  • Advantage or benefit.
  • The feeling of wanting to know or learn about something or someone.
  • Money paid regularly at a particular rate for the use of money lent, or for delaying the repayment of a debt.
  • Activity or subject one enjoys doing or learning
  • A right, title, or legal share in something.
  • Fee for borrowing money
  • other
  • The feeling of wanting to know or learn about something or someone.
  • Money paid regularly at a particular rate for the use of money lent, or for delaying the repayment of a debt.
  • Money paid regularly at a particular rate for the use of money lent, or for delaying the repayment of a debt.
  • verb
  • To make someone want to know about something
  • To persuade to do, become involved with something
  • To excite the curiosity or attention of (someone).
  • other
  • To excite the attention or curiosity of.
  • To excite the curiosity or attention of (someone).
  • To excite the curiosity or attention of (someone).
  • To excite the attention or curiosity of; to cause to be concerned or curious.
rate

US /ret/

UK /reɪt/

  • verb
  • To assess something or consider its qualities
  • noun
  • Current price or cost of something
  • Speed or frequency of events over time
bump

US /bʌmp/

UK /bʌmp/

  • verb
  • To bounce along over a rough surface
  • To knock against with force or violence
  • To move someone to a different group, time or area
  • noun
  • Act or sound of one solid object hitting another
  • Raised area on any smooth surface
emerge

US /ɪˈmɚdʒ/

UK /ɪ'mɜ:dʒ/

  • verb
  • To rise or appear out of some background
  • other
  • To come out into view; to become visible.
  • To become known or apparent.
asset

US /ˈæsˌɛt/

UK /'æset/

  • noun
  • Thing that has value to you
class

US /klæs/

UK /klɑ:s/

  • verb
  • To place things into groups by common qualities
  • To rank people in society from high to low
  • noun
  • Quality of that shows good taste; refinement
  • A group that shares something in common
  • Rank or level in society people belonging to
  • A group of people who study together in school
fed

US /fɛd/

UK /fed/

  • verb
  • To give food, e.g. to animals or a baby
  • To push something through an opening
  • To provide necessary supplies to
road

US /rəʊd/

UK /rəʊd/

  • noun
  • Long piece of hard land for cars to travel on
  • An experience or course of action.
  • (nautical) A partly sheltered area of water near the shore in which vessels may ride at anchor.
  • A route or way on land between two places that has been surfaced to allow travel.
  • A course, direction, or way.
  • adjective
  • Relating to a game played away from a team's home venue.
pin

US /pɪn/

UK /pɪn/

  • noun
  • One of the objects that are set up to be knocked down in bowling.
  • A badge or emblem, often worn to show membership or support.
  • A small, slender, often pointed piece of metal used to fasten things together.
  • A piece of jewelry worn pinned to clothes
  • A supporting leg of a table or other piece of furniture.
  • A personal identification number, used to access accounts.
  • Short for Personal Information Number
  • Small thin thing with a sharp point, for attaching
  • verb
  • To hold someone down so that they can't move
  • To fasten things together using a sharp point
  • other
  • To fasten or attach with a pin.
  • To identify or ascertain something precisely.
  • To hold someone down so they cannot move.