Financial Times- "The dismal performance of asset prices continued last week, despite a rebound on Friday. There are many different forces at work, but recently the focus has turned to the weakening US economy. This weakness seems to be in direct conflict with the continued determination of the Federal Reserve to tighten monetary policy... The FOMC may be underestimating the need to offset the major dollar shock that is currently hitting the economy."
Bloomberg- "Goldman Sachs to clients: whoops. Just six weeks into 2016, the New York-based bank has abandoned five of six recommended top trades for the year.
The dollar versus a basket of euro and yen; yields on Italian bonds versus their German counterparts; U.S. inflation expectations: Goldman Sachs Group Inc. was wrong on all that and more."
We believe this is good news for potentially allocating to markets such as ours, and highlight the article's note regarding the weaker rand vs peso call being reversed.