Sovereign debt risks are rising, housing prices in some markets are at risk for 2007-like declines, and the global economy is losing momentum, the IMF warns.
Emerging markets equity ETFs had inflows of $3.5 billion, or 1.9% of assets, during the five trading days ended Feb. 5, the biggest five-day inflow since April 2014, according to TrimTabs Investment Research, helped by the Federal Reserve's shift to a dovish stance. The funds have not had a daily outflow since late December, TrimTabs said. IShares MSCI Emerging Markets ETF rose 0.9% in premarket trade. It has rallied 7.6% year to date, while the S&P 500 has gained 8.1%. Emerging market bond ETFs had inflows of $900 million, or 3% of assets, in the five trading days ended Feb. 8, the biggest five-day inflow on record. "Demand for emerging markets assets has exploded as the Fed has turned dovish," said David Santschi, director of liquidity research at TrimTabs.
Long U.S. dollar is the second most crowded trade, according to Bank of America Merrill Lynch's monthly survey.
Top financial advisors explain how they are positioning client accounts for the year ahead.
Time to Buy Emerging Markets?
Several fiscal policy reforms, easing monetary policy, stronger currency and relatively higher growth rate kept India ETFs super strong during Modi's tenure.