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Happy
new year to all of our subscribers. The first few days of 2016 have
seen a continuation and concentration of the instabilities that
afflicted emerging markets throughout 2015. The Chinese stock market
crash and increasing tensions in the Middle East presage more doom and
gloom for developing economies if you believe more pessimistic
observers.
While
such events are unwelcome and create an atmosphere of uncertainty for
investors and operators, I would again counsel that it’s
worth looking at the economic and political fundamentals of countries
to gain a clear view of their longer-term prospects. Chinese stocks
have long been considered to be overvalued and this latest plunge,
dramatic as it is, is more likely to be due to the unintended
consequences of new market circuit breakers rather than pointing to any
newly discovered structural weakness in the Chinese economy. The
outcomes of increased political tensions such as those between Saudi
Arabia and Iran are harder to predict but it is not in the long-term
economic interests of either nation to escalate the situation further.
One
thing I can confidently predict for 2016 is that I will be referring to
many more such upheavals in emerging markets. But, as CEO of the most
comprehensive provider of emerging market information, I also promise
to give you a balanced view – highlighting the good as well
as the bad.
Here
are a few stories among the many hundreds that we have published on our
platform in the first week of 2016 concerning the troubles in the
Chinese stock market.
Best
wishes,
Guy Dunn
Chief Executive Officer
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