Emerging Markets Are In Jeopardy

My Comments: Why, you might ask, is this relevant? Here is my answer:

If you are retired, or making plans to retire, it could greatly influence the amount of money you have to spend and live on during the next decade. And with Trump promising to cede economic leadership to China by killing the TransPacific Trade Partnership, the chances of this happening are real.

Like it or not, globalization is here to stay. Emerging markets (where things are made and sold) across the globe will continue to influence the stock and bond markets that we Americans use to build our wealth in support of retirement.

The source of this blog title comes from Leo Nelissen and was published on November 27, 2016. It follows the recent surge of the US dollar (USD) as a currency of choice across the planet.

USD denominated debt has more than doubled since 2009. Today it represents 17.5% of all such debt in emerging markets, which is up from about 1% just 30 years ago. The real increase has happened in the last 7 years. Here’s a key takeaway from his article:

“A stronger USD means that the debt load soars. This sounds very simple – and in fact, it is very simple. However, the outcome can be extreme.” To read the full article, go HERE.

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