Salient to Investors: Ronan Carr at Morgan Stanley said they are tactically overweight Russian stocks – upped to Buy from Sell – and that the situation is not deteriorating and that worst case outcomes, like additional sanctions, now appear less likely. JPMorgan Chase said Russian stocks are likely to extend
READ MORE... →Salient to Investors: Hertta Alava at FIM Asset Mgmt said Hong Kong is usually very safe so the riots are unexpected, while Russia’s economy is getting weaker. Dmitry Polevoy at ING said the market is getting closer to panic, while the ‘ghost’ of peak external debt payments in September and
READ MORE... →Salient to Investors: Michael McFaul at Stanford University sees long-term damage to Russia from Putin’s new direction. Anders Aslund at the Peterson Institute for Intl Economics sees a similar shortfall in Russia’s 2014 growth to 2013’s growth of 1.3%, and versus IMF’s 2013 forecast of 3.9%. Alexei Kudrin expects Russia to post zero
READ MORE... →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: Andrew Swan at BlackRock said: Blackrock has an overweight position in Korea stocks as a lot of negativity is already priced in and the market is so cheap. The South Korean equity market could be in the early stages of bottoming. A recovery in domestic demand may help
READ MORE... →Salient to Investors: Jonathan Garner at Morgan Stanley said the problems are more than just reaction to a Fed tightening, but include declining relative return on equity compared to developed markets. The Russian Micex is at 5 x estimated earnings, the cheapest in emerging markets. The MSCI Emerging Markets Index
READ MORE... →Salient to Investors: BIS said unprecedented stimulus by central banks and historically low volatility levels across asset classes have made it more likely that emerging markets will destabilize. BIS said governments and companies from Latin America to Asia have boosted borrowing in local and foreign currencies, leaving them more vulnerable when
READ MORE... →Salient to Investors: Yngve Slyngstad at Norges Bank Investment Management, Norway’s sovereign wealth fund, said: They are gradually picking up some new markets but at a less rapid pace than at the beginning of 2014. At the end of June, 9.9% of the fund’s stocks and 13.4% of its bonds
READ MORE... →Salient to Investors: Pundits calling for a huge decline in equities are either the absolutely certain types, who have stuck to their prediction for years, and the less media-savvy academics and heads of research at big investment firms who see a decline but after the market goes higher. The last
READ MORE... →Salient to Investors: Flows into emerging-market ETFs have turned positive for the year, reversing outflows in the first 2 1/2 months of 2014. The most inflows in 2014 have gone to India-focused ETFs. Investors have withdrawn $1.5 billion from China-targeted ETPs over concern over economic imbalances there. The RSI of the BlackRock ETF
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