David Rees (Schroders) | Financial markets in the emerging world suffered a wobble last month. It followed the belated “blue wave” in the US election which appeared to clear the way for a large fiscal stimulus, and sparked a sell-off in the Treasury market. The bout of volatility harked back to the Taper Tantrum that rocked EM markets in 2013. Fears of a repeat, as the US economy recovers this year, have become a major concern among investors.
Should we be worried by the fact that the Fed is reducing its balance sheet? David Buckle from Fidelity is one of those who think not; moreover, he believes that it won’t have any impact on the financial markets.