Which currencies and bonds have been punished unfairly in 2018?

Tactical opportunities

From currency crises in Argentina and Turkey to extreme volatility in Italian government bonds, it has been an eventful few months in markets. However, while some countries and markets came under extreme selling pressure, others emerged relatively unscathed.

The moves have been very specific and more reminiscent of dominoes falling than a systematic crisis, when everything is under stress. This has been most evident in emerging markets, where some countries - such as Romania - have been quite stable, while others have deteriorated rapidly.  It began with Argentina, then moved to Turkey, Brazil and Indonesia - and, more recently, Russia and South Africa. Those coming under scrutiny have often been countries with either political uncertainty or a current account deficit that markets are worried could become more difficult to finance with US in...