The really big story in global markets is the whoosh of cash away from the emerging world.
For a long time, emerging markets seemingly could do no wrong. They were on a natural, upward growth glide. Their central bankers weren’t “debasing” their currencies. They had commodities, and exports, and positive demographics, and all that.
But the tides are turning. The developed world is easing less than it used to be. The commodity cycle seems to have peaked. And people are waking up to all kinds of structural problems that persist in these economies.
So the cash is leaving these economies, and one place you can see it most plainly is in the funds (equity and fixed income) that are dedicated to emerging markets.
Via SocGen, check out the “hemorrhaging” of these funds.
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