(Benzinga) The year 2015 saw three major themes dominate: 1) Falling Commodity and Forex Prices, 2) China, Europe and Emerging Markets Slowdown and 3) Fed Rate Hike.
No. 1 Falling Commodity And Forex Prices
The year started with extreme volatility as oil prices plunged and exporter countries’ currencies depreciated in the face of weaker EM demand versus resilient OPEC production. The CHF’s surprise depegging from EUR resulted in investors experiencing extreme drawdowns and several funds closing in its aftermath. Investors later experienced further volatility as the mid year saw the Chinese Yuan’s surprise devaluation against the USD, changing expectations for EM growth in late 2015.
No. 2 China And Emerging Markets Slowdown
Global growth rates remained stagnant, as slowing domestic growth led to the PBoC and other EM central banks cutting rates. Mid-year saw extreme volatility with the Chinese stock market crash, falling almost 20% in one day alone and -43% loss in stock value.
