As emerging markets take a battering from Turkey’s turmoil, traders are positioning themselves to ride out the pain.
As emerging markets take a battering from Turkey’s turmoil, sending stocks and bonds toward their lowest this year, traders are positioning themselves to ride out the pain.
Traders pushed down the value of emerging market assets Monday as Turkish assets sank, before stabilizing on Tuesday. The carnage in Turkey added to an already fragile landscape amid tensions between the U.S. and other major economies such as Russia and China. While some investors say bargains are already emerging, others bet the best option is to sell stocks and bonds and put their money into cash.
Here’s what analysts and investors are saying:
Kevin Daly, a money manager at Aberdeen Standard Investments in London:
- The almost-$800 billion investment group sold some emerging-market holdings on Monday to increase its cash positions.
- Daly sees few signs the Turkish rout will end soon and says emerging markets as a whole could be in for further pain.
- “Playing a market like this is difficult,” he said. “There aren’t any obvious safe zones.”
(read more: Bloomberg)