CNBC: “These charts of past currency crises show Turkey may face a lot more pain”

Excerpt from CNBC’s latest article quoting DataTrek Research:

….. “To be sure, continued volatility in emerging market currencies doesn’t necessarily spell downside for U.S. equity markets.

Nicholas Colas, DataTrek Research co-founder and former chief market strategist at Convergex Group, said in a note Wednesday that such crises take time to develop and that U.S. stocks may still have room to run before currency woes start to have sustained impact.

“Summing up, there are three points to keep in mind: Emerging market crises take time to develop, and at first U.S. stocks will ignore any potential impact,” he wrote. “U.S. equities can continue to rally even as a crisis takes hold, provided there is no adverse impact to the U.S. economy.

“Emerging market-crises do make the chance of wild – but short – swings in equity prices more likely,” he added. “Forewarned is forearmed on this point”….

Read the whole article here on CNBC!

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