Salient to Investors: The IIF reported: Emerging markets received $18 billion in total inflows in September versus the $24.4 billion monthly average from 2010 to 2013. Indian and Mexican bond markets and the Brazilian equity market had inflow gains. South Africa, Turkey and Indonesia had reduced inflows. Read the full
READ MORE... →Salient to Investors: The Ibovespa stock benchmark has risen 35% from its March 14 bottom – the best performance of global major equity indexes – despite economists cutting 2015 growth forecasts month after month to a record low. Bullish investors are betting on a new government in October that will lure investment.
READ MORE... →Salient to Investors: Geoffrey Dennis at UBS said Brazil’s 7-1 soccer loss to Germany was so crushing that it upends the conventional theory that World Cup defeat would be positive for Brazil’s financial markets because it would cause voters to oust Rousseff, who has sunk the economy into stagflation. Instead,
READ MORE... →Salient to Investors: Karen Umland at the DFA Emerging Markets Small Cap Portfolio Fund is slightly overweight India, and had 15 percent of holdings in Taiwan, over 14 percent in South Korea, over 14 percent in China, and 9.2 percent in Brazil at the end of Q1. Umland dislikes Russia
READ MORE... →Salient to Investors: In Q1 2013, BRIC bonds, currencies, and stocks fell together for the first time since 2006. Since 2003, the MSCI BRIC Index has returned 227 percent, but is down 17 percent in 2013 and trailing the S&P 500 by the most since 1998. The MSCI BRIC Index
READ MORE... →Salient to Investors: Alexander Friedman at UBS says: What Fed has done is not unexpected and the market reacted because it was ahead of itself. All the Fed was saying was that the US is doing OK, that the data is trending as it should, and that it has confidence
READ MORE... →Salient to Investors: Jim O’Neill at Goldman Sachs says: China equities are very cheap and are the best place to be in 2013. Don’t expect draconian tightening in China as inflation last year was way below their target and the government has been careful not to stimulate economy too much and are doing a good
READ MORE... →Salient to Investors: Investors are exiting the BRICs as disappointing profits and growing state intervention cause stocks to trail global shares for a fourth year. Over 59 percent of MSCI BRIC index companies have missed analyst estimates for the fourth-straight quarter in 2013. Peter Dixon at Commerzbank says lower valuations means the time is ripe for
READ MORE... →Salient to Investors: The Bovespa stock index is down 6.6 percent in 2013, the worst performer in 94 indexes after Jamaica. The median analysts expects Brazil, the world’s second-largest emerging economy after China, to grow 3.5 percent in 2013 versus 1 percent in 2012. Read the full article at http://www.bloomberg.com/news/2013-02-27/mantega-says-currency-war-he-named-eases-for-recovering-brazil.html Free
READ MORE... →Salient to Investors: Joaquim Levy at Bradesco Asset Mgmt said the Bovespa index may rally 25 percent to 70,000 as the economic rebound offsets the raising of interest rates by July by the central bank to combat inflation. Levy said the government will have to stop making noises that could erode investors’ confidence
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