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The Closing Bell: Dow, S&P 500 Bounce Back As Investors Shake Off Turkish Tantrum
FYI: U.S. stocks halted a multiday tumble Tuesday, with the three main equity benchmarks advancing as Turkey’s currency slide abated, allowing investors to focus instead on a healthy domestic economy and strong corporate results. All 11 S&P Sectors were in the green with XLY up .97%.
The session, however, has been marked by seasonally light volume which can make benchmarks prone to volatile intraday moves, market participants said. Regards, Ted
...to default on their debt obligations is one of the easiest ways in which the strong men defend their own positions, seemingly protect their peoples and show their independence from foreign influence.
Events in Turkey in the days and weeks ahead will finally expose the nature of emerging market risks in jurisdictions where there is no strong protection from a constitution to protect either citizens or capital.
An explanation of how Turkey got over cooked: From Cullen Roche:
...here’s a totally inadequate summary of what’s happening:
-Turkey wanted to spark growth and liberalized bank lending rules. -Banks and local businesses borrowed a lot of foreign denominated debt. -A boom ensued. -A bust is now ensuing.
Here's the details: Framing Turkey’s Financial Vulnerabilites: Some Rhymes with the Asian Crisis, but Not a Repeat https://cfr.org/blog/gone-fishing-0
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https://zerohedge.com/news/2018-08-13/russell-napier-turkey-will-be-largest-em-default-all-time
From Cullen Roche: Here's the details:
Framing Turkey’s Financial Vulnerabilites: Some Rhymes with the Asian Crisis, but Not a Repeat
https://cfr.org/blog/gone-fishing-0