Why DM asset owners are kicking themselves

The sleepless nights endured by many developed market investors since late May have come not from underlying asset performance, but from currency depreciation in emerging markets. This has capped what has been a difficult two years. Not for the first time, emerging markets have watched their currencies weaken in the face of a risk-averse capital flight among developed markets triggered by concerns that the US Federal Reserve would reduce it’s asset purchase scheme, which it decide…