September CMO: Turkey’s Tensions
September 04, 2018
After a year of calm, we expected volatility to increase this year. Yet, other than a short-lived spike in February amid worries of renewed inflationary pressures, markets have been relatively tranquil overall. However, volatility tends to have unpredictable catalysts; in August, that unexpected event was Turkey. Tensions with the US have exacerbated existing concerns over the country’s vulnerabilities, stoking fears of contagion spreading to other emerging markets.