Club Lunch: Asian Currency Markets After Fed Stimulus – Where Should Investment Refugees Head?

Speaker: Enzio von Pfeil
Senior Advisor, MCL Assets Ltd.

TUESDAY, NOVEMBER 26, 2013
12:45PM – LUNCH
1:15PM – ADDRESS
1st FLOOR

Topic: Asian Currency Markets After Fed Stimulus – Where Should Investment Refugees Head?

The Fed continues to be the world’s monetary policy superpower, triggering policy responses from everyone else. So once the official Fed tapering starts, how will Asia’s central banks react? What are the implications of the Fed’s tapering for Asian currencies?

Markets stealthily have been doing most of the tapering for the Fed: long bond yields have been rising for months. However, once the Fed officially announces that it is taking away the punch bowl, will the safer markets overflow with investment refugees, or will they just stay in their war-torn investment zones – unable to move, or hoping that peace soon will return?

Adding more weapons to this war is what hitherto has gone unnoticed regarding short-term interest rates. Enzio expects a “trash crash” to occur within the next six months. How will the Fed react to this “trash crash”? Will it postpone tapering yet again?

Enzio von Pfeil is a seasoned economist with a 30-year finance career spanning the US, Germany, UK and, since 1990, the Far East. He is the author of five books. Enzio is now a Senior Advisor with MCL Assets Limited.