| Emerging market investors are in the grip of their third taper tantrum in 18 months. This time, however, “tantrum” – suggesting an all-consuming but shortlived emotional fit – may no longer be the right word. What’s happening now is more akin to a lasting personality change as markets adapt to a “ new normal” resulting from what many think will be structural rather than cyclical changes in conditions.
“There are so many layers of complexity,” says Luis Costa, a currency and credit strategist at Citi. “A lot of investors out there still think of emerging markets from the perspective of the commodities cycle. But the commodities cycle is over.”..............................................Full Article: Source
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