Readings: Emerging markets, Blackstone + China, BRICs
- BCA Research: What Could End The Emerging Markets Bull Run
The conditions which have historically ended emerging equity bull markets are an inflation outbreak or debt deflation. Our Emerging Market Strategy service argues that neither are currently present.
- Bloomberg: Blackstone + China = Bubble Marriage
Here you have the world’s most-watched communist nation investing in perhaps the most capitalist of Wall Street vehicles: a private-equity firm. It’s a marriage seemingly made in investment heaven. That is, until you consider it also could be the bonding of the world’s most obvious bubbles.
- Brad Setser @ RGE Monitor: Thank you, China and Brazil. Russia and India, please pull your weight
China increased its US holdings by 52.5b in the first quarter (a $200b annual pace). Brazil increased its US holdings by $23.1b in the first quarter. Russia came in at a mere $6.3b. India came in at $6.1b.
Russia and India are diversified. Brazil and China are not. It is safe to assume that Russia and India were big sellers of dollars for euros and pounds in Q1.
Related Posts: