Disliked{quote} yeah there are a lot of worrying signs so have to keep it tight when trading EM, compare inflation for INR vs US. concerning differential over the past 10 year means a startling overvaluation for the INR right now (fair value via infl could be over 90!) Quite risky at the moment.Ignored
or is it? maybe 2008 was larger on a logarithmic scale.
but still, that bubble was faded in a carry trade for like 3 years straight.
remember, india is absolutely massive, so its unlikely they will see any Zimbabwe like inflation.
a 50% devaluation is still brutal enough (INR at 90)
i think long XAU/INR is the strongest trade anyone could have taken in the last couple months.
just realized this is Forexcube's thread..
sorry man
Be hopeful in a winning position, and fearful in a losing position.