Salient to Investors:
JPMorgan Chase said that from June 2010 through 2012, the positive correlation between developed and emerging- market equities daily performance was 89.6 percent, but in 2013 there is a negative correlation of 60.3 percent as emerging-market stocks slumped.
Andres Garcia-Amaya at JPMorgan said emerging markets could continue to fall because their economies are not growing as fast but their wages continue to rise, while commodities could also weigh because equity markets in developed economies are much more balanced in sector composition. Garcia-Amaya said the picture may be brighter for emerging-market equities beyond the next 3 years.
Read the full article at http://www.bloomberg.com/news/2013-04-23/emerging-market-returns-unhinge-from-developed-chart-of-the-day.html .
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