Below is excerpt only from today’s edition of macro-strategy commentary courtesy of Rareview Macro LLC publication “Sight Beyond Sight”

Firstly, the Stock Exchange of Thailand SET Index (symbol:  SET) is showing the largest negative and the Dollar-Rupiah (USD/IDR) is showing the largest positive risk-adjusted returns across regions and assets.

Of note, Thai stocks fell almost 10% at one point last night and the Indonesian Rupiah weakened by 2% to its lowest level relative to the US Dollar in 16 years. The head of the Thai bourse said no measures were needed to shore up stocks and investors shouldn’t panic and the Indonesia central bank reiterated their view that they will always be in market to stabilize the IDR currency.

Why do we start by highlighting Thai and Indonesian risk assets?

Because South East Asia is the clearest example we have seen of foreign investors pulling out of emerging markets and a prime example of what happens to stocks and currencies when there is a lack of liquidity. more