Is A Stronger U.S. Dollar Really Bad News? Three Myths About Emerging Markets

Is A Stronger U.S. Dollar Really Bad News? Three Myths About Emerging Markets by Michele Mazzoleni, Research Affiliates

The fragility of emerging markets continues to dominate financial news. Several currencies have registered double-digit losses over the past few months, equity valuations have been dropping, and the rate of economic growth has decelerated. Even the Chinese government capitulated to a slowing economy and devalued its currency, a decision that should provide support to its exporting sector. These events are encouraging market commentators and investment strategists to predict further economic struggles in emerging countries and continuing weakness in their stock and foreign exchange markets. There appears to be a fairly broad consensus among market participants: The outlook for emerging market countries, companies,...