Political Risk Latin America Blog @PolRiskLatam

Emerging markets: double or nothing

Posted in News and Articles, Political Risk by politicalrisklatam on February 16, 2011

by Josh Noble for Financial Times – Beyond Brics, February 16th, 2011.

Investors may be getting out of most emerging markets, but they seem to be doubling up on those they still like. February’s survey of fund managers from Bank of America Merrill Lynch shows a collapse in overall allocation to emerging markets, but a significant increase in a handful of countries.

The big regional winners are in eastern Europe and the Middle East, while the big loser is Latin America.

On a country level, Russia stands out for its popularity. Eighty-eight per cent of survey respondents are overweight the market, up from around 50 per cent in January.

Turkey too is back in fashion, with 44 per cent overweight, up from around 20 per cent – a sign that a move to deter so-called “hot money” by cutting interest rates in December (and keeping them that way this week) is not necessarily working. (continue reading… )



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