Archive for February, 2014

Bloomberg: Kiwi Will Drop With New Zealand Like Ireland in 2007, Jen Says

New Zealand is “like Ireland in 2007” and it’s only a matter of time before its currency enters a meaningful depreciation, according to Stephen Jen, a partner at London-based hedge fund SLJ Macro Partners LLP.

While “the case for kiwi seems compelling,” the reality is “quite different,” Jen, a former International Monetary Fund official, and colleague Fatih Yilmaz wrote in a note to clients yesterday. “New Zealand has severe structural weaknesses that are very similar to those of crisis-hit Southern European and Southern emerging-market economies. Kiwi may be 20 percent overvalued.”

Read the original article on the ‘Bloomberg’ website.

Guardian: Western investors gobble up juicy returns from emerging markets …

But plenty of analysts believe that whichever way he turns, Simsek will lose. Stephen Jen of currency hedge fund SLJ Macro Partners said: “Many of these emerging-market economies [including Turkey] are cornered: they have to choose between defending the exchange rate, fighting inflation and supporting growth. Sudden stops in capital inflows tend to force countries to face lose-lose situations.”

Read the original article on the ‘Guardian’ website.