, Columnist
Taper Tantrum In Asia?
It's all about the flows, but watch the earnings.
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The global bond and stock selloff has revived unhappy memories of the 2013 taper tantrum, when the Federal Reserve's rumblings about removing stimulus shaved 17 percent off the value of emerging market stocks in less than two months.
For the current difficulties you can partly blame risk-parity funds, which buy benchmark government bonds to hedge against stock portfolios. When bond prices fall, these hedge funds have to sell their stock holdings to cover their positions.