The headline may be a bad pun, but the warning is serious. Many people believe that the trouble with Turkey’s currency is confined to that country, but that is far from the case. Turkey is just the first country that implemented populist policies when the going was good to now pay for these policies. The markets are about to teach populists a lesson, and Turkey is the first instalment.
There was a larger share of emerging market investors who felt they were under-invested in the asset class in February compared with a previous survey, possibly signalling a positive change for emerging markets, a survey by Societe Generale showed.