If you’re looking for yet another example of investors fleeing the weak U.S. dollar, look no further than emerging markets funds.
According to EPFR $6 billion of U.S. investor money flowed into merging markets during the week ending October 6th, which was the largest weekly flow since the end of 2007.
Analysts at the firm, which focuses on emerging and global fund flows by individual as well as big institutions, credited the strong inflows to a slump in value of the U.S. dollar.
It’s also a great example of how monetary policy in the U.S. is spilling over into other countries via capital flows, inflating asset prices abroad. In case you missed it, emerging market stocks are on fire.