ETFs will be one transmission mechanism for this year's source of international financial contagion

John Robertson


ETFs will be one transmission mechanism for this year's source of international financial contagion. Each of the developing economies has its peculiar mix of economic, political and social issues with which to cope. Their economic linkages appear weak. Investment strategists always trying for eye-catching themes to win attention have encouraged the indiscriminate flow of funds to emerging markets via broad-based ETFs. Now, there is little chance to discriminate in the sell off. Concerns about Turkey or Argentina will lead to sales across the board for emerging markets. My daily market thoughts at (VIEW LINK) raise two aspects of the emerging market worries with an impact on the resources sector: the impact of exchange rate adjustment on growth and the connection between emerging markets and resource sector equity prices.

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John Robertson is Chief Investment Strategist for PortfolioDirect a provider of resource sector investment stock ratings and portfolio strategies for mining and oil and gas investors. He has worked as a policy economist, corporate business...


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