Salient to Investors: Allan Yu at Metropolitan Bank & Trust said QE will benefit emerging markets and equities, and likes the U.S., Europe and China taking steps to avert a slowdown. The MSCI gauge is up 15 percent from the year’s low on June 4. Benoit Anne at SocGen said the powerful policy signal sent by the Fed means the
READ MORE... →Salient to Investors: Global investors are buying emerging-market debt and shares of well capitalized companies. Anne Richards at Aberdeen Asset Management likes balance sheet strength, says many European equities are high risk and U.S. Treasuries are overvalued. Richards says investors are underestimating the health of Asian issuers – Likes Indonesian sovereign debt, Latin American
READ MORE... →Salient to Investors: Emerging-market equity funds posted $8.7 billion of outflows in Q2, $262 million of outflows n the week ended June 27 – 2012 inflows dropped to $14 billion. Russia’s RTS Index lost 22 percent this quarter, Brazil’s Bovespa Index lost 18 percent, Shanghai Composite Index lost 2.3 percent. Chinese industrial companies’ profits
READ MORE... →Salient to Investors: Neil Shearing at Capital Economics says there is an improvement in the global risk appetite because fears of an immediate disruption in the euro zone have eased, and policy makers seem willing to move. EU is the largest export market for Brazil, Russia, India and China. EPFR Global reported that emerging
READ MORE... →Predictions: Esther Law at Societe Generale said the Fed did the bare minimum extending operation twist, which will be perceived as short-term negative for risky assets, including global emerging markets. Law said China’s manufacturing sector, especially small and medium-sized factories, continued to slip. JPMorgan raised Indian equities to overweight from neutral. Read the
READ MORE... →Predictions: Templeton’s Mark Mobius sees emerging-market stocks in a sweet spot as Chinese economic growth remains buoyant and valuations plunge from historical averages, and is increasing holdings in China, Russia, Turkey, Thailand and Africa. Read the full article at http://www.bloomberg.com/news/2012-06-19/most-emerging-stocks-decline-on-europe-debt-crisis-oci-rallies.html
READ MORE... →Salient to Investors: Stocks in developed countries are being favored over emerging markets in the belief they provide a cushion during a weakening recovery. Keith Wirtz of Fifth Third Asset Management sees a shift to countries less reliant on mining and energy production. Eric Teal of First Citizens Bancshares said definitions of buy, sell and
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