New Frontiers

by Michael J. Howell26. September 2013 14:07

Frontier stock markets have outperformed strongly in 2013 compared to traditional EM. The reason is unequivocally because of better liquidity conditions. In a report published today, we examine the detail behind this. We conclude that Frontier Market liquidity is more closely correlated to buoyant US liquidity, whereas EM liquidity is more closely correlated with lacklustre Chinese liquidity. Thus, if US liquidity remains strong and Chinese liquidity fails to pick-up, Frontier markets will further outpace EM over coming months.

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