Source: blogs.barrons.com - Wednesday, March 18, 2015Emerging markets rallied after the U.S. Federal Reserve indicated low rates will stick around a little while longer. Markets and oil prices rallied on the news. Among developing markets, shares were higher in the so-called “fragile” nations with large current account deficits and other economic factors that could be first in line if and when foreign investors sell assets: the iShares MSCI South Africa ETF ( EZA ) rose 4.2%, the iShares MSCI Brazil Capped ETF ( EWZ ) rose 2.9% and the iShares MSCI Turkey ETF ( TUR ) was up 2.8%. Russia was the biggest winner: the Market Vectors Russia ETF ( RSX ) rose 4.8%. The worst performer: the Global X FTSE Greece 20 ETF ( GREK ), down 2.5%. Overall, the Vanguard FTSE Emerging Markets ETF ( VWO ) was up 2.6%. Reuters U.S. Federal Reserve Chair Janet Yellen. International Monetary Fund Chair Christine Lagarde expressed concern in a speech at India’s Reserve Bank Tuesday that the unwinding of unconventional monetary easing will result in to volatility and instability for emerging markets. That’s because the Fed can’t be timed, as Chair Janet Yellen made clear in removing “patient” from rate-policy language Wednesday: “Just because we removed the word patient doesn’t mean we are going to be impatient,” Yellen said at Wednesday’s press conference. Lagarde noted that dollar strength pressures countries with dollar-linked rates — but external trade in other currencies. It also pressures sovereigns All Related
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