Telegraph: BRICS risk ‘sudden stop’ as dollar rally builds

Former IMF official Stephen Jen, now at SLJ Macro Partners, foresees a “sudden stop”, the moment when funding for emerging markets dries up abruptly and investors run for the exits.

Mr Jen said the flow of money before 2007 was “pulled in” by a genuine growth story, but what has happened since is different. Money has been “pushed out” of the West by QE in the US and Britain, or by the emergency stimulus in Europe, with liquidity washing through the global system.

Read the original article on the ‘Telegraph’ website.

Posted on the 28/05/2013 at 3:18pm by SLJ Macro Partners LLP.