The news Bruce Stout, the hugely successful manager of the Murray International investment trust, wants to increase his holdings of direct emerging markets stocks comes at a peculiar time, to say the least.
If you believe the consensus trade at the moment, EM equities are cheap for a damned good reason. If we are to believe the mainstream view, Stout should be putting his money into US dollar assets instead. Emerging markets appear to be labouring under a number of disadvantages, not least that global liquidity is aggressively flowing out of key BRIC states. According to the developed market bulls, credit creation in the US has picked up noticeably, and there is even the faint whisper Europe might have finally turned the corner, even if it has meant arriving at yet another stopping of...
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