Capital is moving from the Periphery to the Center…the definition of “Center” is narrowing as the definition of “Periphery” is widening. This capital flow is signaling increased market risk. The currencies and stock markets of the Emerging Countries (such as India, Brazil, Indonesia, South Africa) have been falling Vs. the Developed Countries’ markets…the currencies of Australia, New Zealand and Canada have been pulled into the vortex of the falling Emerging Market currencies…as the definition of “Periphery” is widening.
