"A Once Bullish Crispin Odey Fears Recession In Emerging Markets" - ValueWalk

ValueWalk reports on Crispin Odey's fears of recession in emerging markets:

Top U.K. hedge fund manager, Crispin Odey, thinks recessions are “very likely” to occur in the emerging markets, but this could be exacerbated by the strength in the U.S. dollar. He says by its very nature of the U.S. dollar being the worldwide reserve currency, when the dollar is in demand, it drains emerging markets from dollars. As a result, the only defense the emerging market countries have to stop outflows is to raise interest rates.  The problem is when the country is heading into recession, or they are in a recession, raising interest rates is difficult because it would cut of economic development in the region. While they might try and defend their currencies, ultimately “many will follow where the ruble and yen lead,” he wrote.

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