Anti-Globalization fears in Emerging Markets point to risks for USA equities - AmpGFX
|Greg Gibbs, Director at Amplifying Global FX Capital, notes that while anti-establishment forces are at work in major developed Western economies, many emerging markets that have relied on international trade to drive their economic development are threatened by these trends.
Key Quotes
“There is some evidence that the market has responded with weaker equities and currencies in many of these countries, particularly in Asia, but also in Latin America.”
“This points to a potential threat to the USA stock market. If investors see anti-trade rhetoric by Trump and related trends in other developed markets undermining emerging market assets, then it must also see risks that companies in the USA will also suffer by retaliatory policies in emerging markets where large US companies operate.”
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