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Panic in emerging markets: Time to "long" Samsung?
With big currency and equity falls in many emerging markets in recent weeks, there's one country that looks as though it's weathering the crisis better than others: South Korea. Saxo Bank's Head of Equity Strategy, Peter Garnry, says in dollar terms, the Seoul index has been flat since the Fed Chairman, Ben Bernanke suggested it could soon taper its bond buying programme.
Peter says South Korea is looking strong and the sell off in equities hasn't hurt a company like Samsung. He says this could be a good time to "go long" on the technology company.
Elsewhere, Peter says it's clear India, Brazil and Turkey have been hardest hit and all three are in a bear market at the moment. But he believes Turkey appears best placed to rebound, at least in the short term.
The big worry, however, is that the panic we're seeing becomes a self-fulfilling prophecy. We've seen before that investors pull their capital away from a particular market all at once and without more direction from the Fed, this could develop into a bigger issue.
01:53 minutes
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