This week Prattle turns its algorithms towards the central banks of the world’s fastest growing economic region, Asia.
Asia has been unstable ever since the currency devaluation that China carried out back in August, and the subsequent market turmoil has yet to die down. The dovish mood score of -.1 for the region reflects this continued anxiety.
Prattle believes that this does not indicate systemic regional weaknesses. Rather, this is representative of a much larger problem: the negative consequences of China’s export-driven growth model are finally starting to bear their teeth.
Other countries in this area are being dragged down by regional and “emerging markets” investing due to varying ties to slowing Chinese growth.
Bottom line: we still see valuable investment opportunities in the area, but that the best opportunities right now lay with smaller Asian economies (albeit those that have been adversely impacted by China in recent months).