Global View December 2015: Emerging Markets in 2016…Yes But No

by Michael J. Howell2. December 2015 18:40

After more than five years of underperformance, it must be Buggin’s turn for Emerging Markets to excel in 2016? We agree that the positives are slowly coming together, but based on liquidity data we may still be a few months away from returning to EM assets. One reliable indicator is the excess of EM over DM liquidity and this is still in negative territory. Another is the risk positioning of investors in EM assets: despite the large sell-off over the past 12 months, it would appear from the data that investors’ risk appetite still looks high, on average.


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