Turkey, Brazil and Argentina, the list goes on. All inflation emerged, crashing currencies and securities in decline. Below is a video transcription: what might be the causes of dizziness in emerging markets? Hello me, many emerging markets are indeed passing jolt. In Turkey, Argentina, Brazil and other countries that increase in inflation, the collapse of the local currency and forecast to enter recession. Most problems come in the wake of increasing interest rates in the United States and the strengthening of the dollar. It is the dolarit-envirosax loans of those countries and reduces the attractiveness of the capital market. Even the sharpest increase in energy prices, particularly oil, have a negative effect on developing countries based mainly on imported energy. Rough trade war of President trump in some countries are added more fuel to the fire stability in emerging markets. ADI, have created attractive investment opportunities in stock markets in emerging markets? As usually happens in these scenarios, the stock markets in those countries responded with sharp price declines, but we still shouldn’t run to get there. On the one hand, indices for those countries traded in lower mchfilim many more indexes, but the mchfilim biased down because financial stocks, most of which are in crisis. Turkish banks or the Greeks, for example, probably won’t heal from their debt crisis easily, so when they traded half their fortune, still is in speculative investment. Chinese technology companies are big ש”חטפו lately because of the war with the United States, still traded in relatively high mchfilim so we think are high-risk investment right now. Well, what about the bus, do you recommend there might take advantage of declines? Unlike stocks, where registered sharp declines mainly in the troubled companies, the declines were mostly rohabiot, without distinction between dangerous to society. One reason is the collapse of currencies in those countries that had the Government agenda and with them also the most corporate bonds. The point is that there are quite a few companies in emerging markets to Western countries exporting stability so that their income is not expected to suffer from the mess. Furthermore, their income mainly in dollars or euros, and their strengthening against the local currency is expected to improve the profitability of the companies to maintain their stability. We saved the sharp declines and bought Turkish bonds of companies and such stability, Argentine shares yield to maturity of eight to ten percent.


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