Asante issues EM bubble warning

First State's Jonathan Asante has warned emerging markets are heading for a bubble because policymakers have resumed quantitative easing.

The head of global emerging market equities said he is taking steps to preserve capital ahead of the inevitable crash. “Monetary policy is not being set for the markets we invest in. It is being set for low growers, not fast growers, which is a huge problem,” he said. “Many places like ours could get massively out of control and many of them already are.” Angus Tulloch, joint managing partner of the Asia Pacific & global emerging markets equity team, is also concerned about rising asset prices. “Policymakers are recreating the conditions of 1999 and 2007 which both ended in disa...