"HONG KONG—Investors sold emerging-market stocks, bonds and currencies in November with such force that some are asking whether the fallout from Donald Trump’s U.S. election victory is causing a repeat of the so-called taper tantrum in 2013."
The resulting rout in emerging markets has sent currencies from Turkey to Mexico plunging against the dollar in November, while stock markets in the Philippines and Brazil have dropped more than 4%.
A party of one:
Money flowing to the U.S. flowed out of the rest of the world...
Dow versus World ex-U.S.:
Every U.S. rally has been followed by a semblance of a rally in the rest of the world...except this one:
And every World sell-off has been followed by a U.S. selloff. But we've only seen this movie 7 or 8 times, so how would we know?
"But, but, but..." - Europe is rallying ahead of the ECB on Thursday and news that Italian banks just got downgraded...
Point taken. Right back to where it was last December...
And poking China with a Twitter stick makes perfect sense right now...because we know they didn't monkey hammer global markets at this time last year coincident with the Fed rate hike...
Point taken. Right back to where it was last December...
And poking China with a Twitter stick makes perfect sense right now...because we know they didn't monkey hammer global markets at this time last year coincident with the Fed rate hike...
