Emerging Markets: Less Gloomy, But Still in Europe's Shadow

EPFR Global's Director of Research, Cameron Brandt, observes that although the outlook for emerging markets (EMs) is less pessimistic, most flows are still into Europe. There has been an acceleration of flows into specialized Europe and Japan equity funds over the last two weeks, based on perceived value opportunities in these markets. Emerging markets, especially those connected to Europe, are doing well, but as a whole, the diversification out of EMs has lost speed instead of ceasing. India is correcting and valuations are coming to a point where investors may start re-gaining confidence. China's flows have been guarded in recent times even with recent policy statements, with investors wanting concrete results before investing more.

 

Source: The Economic Times