Repatriate!

Emerging Markets Junkies, here is that dip you’ve been waiting for…

The one-way trade of the last 18 months has finally seen a reversal of flows – money is now being yanked out of the BRICs at an increasing pace.

From USA Today:

Investors are fleeing emerging markets funds — which may in itself push down those markets further.

Worldwide, investors yanked a record $7 billion from emerging markets funds the week ended Feb. 2, according to EPFR, which tracks the funds. That’s about 1% of the funds tracked by EPFR, says Brad Durham, the company’s managing director.

The average emerging markets fund, which invests in small or developing stock markets, has fallen 2.8% this year, according to Lipper.

The “no-brainer” emerging markets investment was on every strategist’s lips this past fall, now it’s become a rout for those who plowed in with abandon.  And because asset flows tend to chase in and out, the impact on the indexes and share prices is immediate when the money runs away.  And in case you’re new around here, down prices from selling tend to beget more selling.

Memo to the Precious Metals pile-on people…guess who’s next!

Source:

Investors Are Evacuating Emerging Markets Funds (USA Today)

This content, which contains security-related opinions and/or information, is provided for informational purposes only and should not be relied upon in any manner as professional advice, or an endorsement of any practices, products or services. There can be no guarantees or assurances that the views expressed here will be applicable for any particular facts or circumstances, and should not be relied upon in any manner. You should consult your own advisers as to legal, business, tax, and other related matters concerning any investment.

The commentary in this “post” (including any related blog, podcasts, videos, and social media) reflects the personal opinions, viewpoints, and analyses of the Ritholtz Wealth Management employees providing such comments, and should not be regarded the views of Ritholtz Wealth Management LLC. or its respective affiliates or as a description of advisory services provided by Ritholtz Wealth Management or performance returns of any Ritholtz Wealth Management Investments client.

References to any securities or digital assets, or performance data, are for illustrative purposes only and do not constitute an investment recommendation or offer to provide investment advisory services. Charts and graphs provided within are for informational purposes solely and should not be relied upon when making any investment decision. Past performance is not indicative of future results. The content speaks only as of the date indicated. Any projections, estimates, forecasts, targets, prospects, and/or opinions expressed in these materials are subject to change without notice and may differ or be contrary to opinions expressed by others.

Wealthcast Media, an affiliate of Ritholtz Wealth Management, receives payment from various entities for advertisements in affiliated podcasts, blogs and emails. Inclusion of such advertisements does not constitute or imply endorsement, sponsorship or recommendation thereof, or any affiliation therewith, by the Content Creator or by Ritholtz Wealth Management or any of its employees. Investments in securities involve the risk of loss. For additional advertisement disclaimers see here: https://www.ritholtzwealth.com/advertising-disclaimers

Please see disclosures here.

What's been said:

Discussions found on the web
  1. video transitions 2020 commented on Sep 15

    … [Trackback]

    […] Read More on that Topic: thereformedbroker.com/2011/02/08/repatriate/ […]

  2. Bitcoin Evolution Review commented on Sep 22

    … [Trackback]

    […] Read More on that Topic: thereformedbroker.com/2011/02/08/repatriate/ […]

  3. Parasols kopen online commented on Oct 27

    … [Trackback]

    […] There you will find 77530 additional Information to that Topic: thereformedbroker.com/2011/02/08/repatriate/ […]

  4. scotiabank online commented on Dec 04

    … [Trackback]

    […] Find More Info here on that Topic: thereformedbroker.com/2011/02/08/repatriate/ […]

  5. 사설토토 commented on Dec 25

    … [Trackback]

    […] Find More here on that Topic: thereformedbroker.com/2011/02/08/repatriate/ […]