After appearing on "The Strategy Session" on Thursday, Judah Kraushaar, managing partner of Roaring Brook Capital, a hedge fund focused on U.S. mid-cap companies, continued the discussion off-air with David Faber, about what could hold back emerging markets.
"An important risk is budding inflation, at least in parts of various product markets. And when you start with emerging markets and all the money that's being created by the Fed and other developed countries—central banks tend to be migrating to the emerging markets—you've got a flood of money that's sort of percolating into inflation," Kraushaar said.
"These are countries—whether it's Brazil, or Turkey, India, China—they've gone through boom, bust for 30 years and this is their time to shine. And to allow unbridled speculation to take over? Most policy makers, I think, have at least some sensitivity to that," he said.