Archive for September, 2013

Money News: Worst of Crisis Over for Asian Emerging Markets, Nomura Says

Ashley’s view contrasts with Stephen Jen, co-founder of hedge fund SLJ Macro Partners LLP, who has said more losses are likely for emerging markets because investors will withdraw funds as the Fed pares stimulus. About $44 billion has been pulled from emerging-market stock and bond funds globally since the end of May, data provider EPFR Global said on Aug. 23.

Read the original article on the ‘Money News’ website.

Money News: Rickards: Syrian Conflict to Hasten Gold’s Rise to $7,000

“I think the probability has fallen that they do something in September,” Stephen Jen, managing partner of SLJ Macro Partners, a hedge fund based in London, told Reuters.

“There could be a war in a part of the world that would drive oil prices substantially higher. And they’re not low now.

“Sure the Fed could still do it. But if oil rises another $20 a barrel from here, I don’t know why they would feel they had to do it now,” he added.

Read the original article on the ‘Money News’ website.

Live Mint: Rupee to real will tumble another 20% in Fed taper: Stephen Jen

The co-founder of SLJ Macro Partners LLP and former global head of foreign-exchange at Morgan Stanley warned of a sudden stop of capital to developing nations a month before a retreat that sent the rupee to record lows and the real to its weakest level since 2008. Now, Jen says, the worst is yet to come because $3.9 trillion of funds invested in emerging markets in the past four years will leave as the US Federal Reserve withdraws stimulus.

“Whatever selloff you think is reasonable, just double it,” Jen, 47, said in a phone interview from London. “It’s the way markets trade: they overshoot.”

Read the original article on the ‘Live Mint & Wall Street Journal’ website.