SaxoTV

Fasdal: Currency crisis offers opportunities and here's why

1,363 views
August 21, 2015 bond, bond buy, bond buying, bond buying programme, bond investing, bond investment, bond investor, bond investors, bond market, bond markets, bond portfolio, bond purchase, bond strategy, bond yield, bond yields, bond-buying programme, bondbuying, bondmarket, bonds, bonds and equties, bonds hedging, bonds market, bonds to equities, bonds update, bonds v equities, bonds v stocks, brazil, brazil real, brazilian, brazilian bonds, brazilian real, brl, currencies, currency, currency market, currency markets, currency strategy, currency trading, currency trends, emerging, emerging currencies, emerging economies, emerging market, emerging market bond market, emerging market bonds, emerging market currencies, emerging market economies, emerging markets, emerging markets bond markets, emergingmarkets, ems, equities, equities prices, equities saxo, equities trading, equities v bonds, equity, equity analyst, equity clients, equity index, equity market, equity market 2015, equity markets, equity platform, equity portfolio, equity portfolios, equity research, equity risk premium, equity strategy, equity trades, equity trading, equity valuation, eur, euro, europe, european, european central bank, european economy, european union, eurozone, fed, fed chairman, fed meeting, fed policy, fed rates, federal, federal open market committee, federal policy meeting, federal reserve, federal reserve rate, federal reserve rate hikes, federal rseserve, fixed income, fixed income bonds, fixed income corporates, fixed income portfolio, fixed income trading, fixed income v equities, fomc, india, india investment, indian, inr, mexican stock, mexico, mxn, qe, qe2, saxo bank, saxo tv, trading, tradingfloor.com, usd, usd index
Currencies in emerging markets have been weakening, prompting fears of a wider sell-off in bonds and equities. Saxo's Simon Fasdal says the reason for the panic is a combination of concerns about a US Federal Reserve rate hike and pessimistic outlooks for many EMs. 

He warns that there could be a knock-on effect in European bonds and stocks, as well as the US equity market. But Simon thinks that if there is rate hike soon, the Fed will be extremely dovish.

That could open up opportunities in the bond markets, he says, including emerging markets such as Mexico, India and Brazil. He also believes the euro will strengthen which could encourage the European Central Bank to build what he calls a 'QE2' version. If this happens, Simon says investors should look to European corporate bonds and the high yield sector.