It’s clear now that the equities markets in Canada, the U.S., and Europe are getting spooked about the situation in the Emerging Markets.

One of the focal points has been on the currencies in the Emerging Markets that appear to suffer whenever there is more attention on the “Tapering” of the U.S. Federal Reserve’s Quantitative Easing (money-printing).  These markets were major beneficiaries of QE as indicated by the growth in their Current Account Surpluses whenever the Fed created liquidity over the past couple of years.  Amusingly, the politicians in the Emerging Market Countries complained that there was too much capital flowing into their economies as the Fed printed money.  I wonder if they are familiar with the old saying “Be careful what you wish for.”

The opinions expressed in this report are the opinions of the author and readers should not assume they reflect the opinions or recommendations of Richardson GMP Limited or its affiliates. Assumptions, opinions and estimates constitute the author’s judgment as of the date of this material and are subject to change without notice. We do not warrant the completeness or accuracy of this material, and it should not be relied upon as such. Before acting on any recommendation, you should consider whether it is suitable for your particular circumstances and, if necessary, seek professional advice. Past performance is not indicative of future results.  

Richardson GMP Limited, Member Canadian Investor Protection Fund.

Richardson is a trade-mark of James Richardson & Sons, Limited. GMP is a registered trade-mark of GMP Securities L.P. Both used under license by Richardson GMP Limited.