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Colombian fireworks and the Fed's head fake
Weekly investor research
Colombia's weighting in the GBI index expands sharply as access for foreign investors improves. Investors should expect more along similar lines from other Emerging Markets (EM) countries. We also discuss polls in Brazil, Russian economic data, the latest bout of hard landing fears in China, and financing issues in Argentina (in legalese). In developed markets, the Fed is being hawkish at a time of soft economic data in order to not to have to be hawkish when the data actually picks up. The forced U-turn on tapering last summer looms large in the Fed's decision last week to appear hawkish, but the removal of forward guidance was unashamedly dovish.