It may be time to get out of emerging market equities, according to Nomura’s predictions for 2011.
The firm see equities surging in the U.S. and Japan, with the S&P 500 returning 18% and Tokyo’s TOPIX returning an even bigger 21%.
But the real story may be in the projected disappointing performance of emerging market equities. Those investors who have flooded those markets with cash in 2010, seeking returns, may need to move back to the developed world in 2011.
In dollar terms, the return for EM is a projected 14%. But in local price, a mere 6%.
Think Nomura are delusional? Check out 12 glaring examples of conventional wisdom they’ve found investors are subscribing to right now >
Business Insider Emails & Alerts
Site highlights each day to your inbox.