As we see the US emerge from the winter hibernation (Retail Sales, Industrial Production, Jobless Claims), we are also seeing signs of Emerging Markets recovery on Macro.
Big outflow last week of $-2.2 billion after a week of strong flows $1.9 billion the week before. What I am seeing today and over last few days in ETF land is that investors are allocating to emerging markets away from domestic markets.
I just got back from a week in the islands and tried to escape the chorus of emerging market bears. It’s been a nasty week and emerging markets has been near the top of the loser board, but the reach of journalists and voices of marginal observers of emerging markets found its way to me on a quiet beach in the Caribbean.
Weekly Fund Flow data is out there is some unsurprising results from the top and bottom of the leader board.
The rich get richer and the poor get poorer. I’m not sure not sure you can expect this to change anytime soon. Fund flows into EM last week broke a three week downtrend with new inflows.
With all the horror headlines from the euro zone, from riots in Greece to whether Spanish banks will actually receive €100 billion in bailout money, who is benefiting? It’s an ill wind that blows no man any good, in free markets as in life. (Hint: emerging markets).
Wednesday’s best web covers Brazilian aid and influence in Africa, new mining laws in the Philippines, rare earth mining in China, surging global food prices, and Chinese secrets getting out.