Why 'caution' is the watchword in Asia

Many countries did not reflate alongside China

With all the great things happening in Asia, it is rather depressing that the markets are almost single-mindedly focused on what the US monetary authorities are doing.

Take the stockmarkets of Asia. Look at those in countries with low inflation and high current account surpluses. I believe they will almost exclusively have positive returns for the year.  Look at those countries with current account deficits and high structural inflation. I believe they will almost exclusively have negative returns for the year. There can be only one reason for this division: worries about US monetary policy. And these worries are not without cause, for the new Federal Reserve chairman Jerome Powell seems intent on establishing his credentials as someone who believes...