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Is the Cold War coming back?
Weekly investor research
15 February 2016
Is the Cold War coming back? Judging by recent exchanges between NATO officials and Russia’s Medvedev, the answer is yes. We beg to differ. We outline why this question is extra-ordinarily important for Emerging Markets (EM) countries and explain why fears of a return of the Cold War of old are unfounded. We also explain the world’s Dollar Problem, a vicious cycle where the stronger Dollar destroys growth, which in turn begets an even stronger Dollar. There is of course nothing new in this, except that the strong Dollar is now also hurting the US. And that is why a Dollar Accord is no longer a remote possibility.