Analysts Split On Emerging Markets Prognosis: Currency Sell-off A Passing Phase? Or Signal Of Imminent Crisis?
Financial and economic analysts are divided over the significance -- or lack thereof -- of recently plunging currency values in the emerging markets. Nomura Holdings, Inc. (NYSE:NMR) expects the storm to pass by fall, at which point it sees investment opportunities; the Jerome Levy Forecasting Centre takes a rather different view.
The Japanese financial services firm, Nomura, said Friday: "The current sell-off is less crisis-like than others in the past, especially when viewed in a global perspective. This does not imply that we are ready to get long EM assets right here, but it does imply that we are willing to look for a long opportunity within the next two-three months."
Jerome Levy's director of research, Srinivas Thiruvadanthai, told International Business Times that the emerging markets have a "structural transition problem" and that he sees a "serious crisis in the emerging markets in the next one to two years."
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