The Czech market went through its second-deepest sell off ever yesterday as investors responded to recent currency falls across emerging markets. The exit of investors from local currencies and the strong performance of the markets in past few months was the trigger behind yesterday’s sell off. A similar pattern occurred in neighbouring markets such as Poland, Hungary and even markets like Russia, Turkey and Egypt were under strong pressure. For days to come currency markets will signal further moves, yet we feel a potential downside risk still lingers, particularly for stocks with a substantial YTD performance. For the time being we advise investors to shift money into stocks with strong individual stories (e.g. Cesky Telecom) or stocks with a strong dividend yield. Though important to note, we also believe the sharp sell offs may produce appealing prices for buying into the shares again, and particularly interesting situations may occur should the market capitulate again.