For Market Timers, Prepare For Emerging Market Ralley

wochit business
March 21, 2014 AT 11:49 AM
The end is near for emerging markets. Markets like China have underperformed the MSCI World for three of the last five years. During this period, there was a significant re-rating of the U.S. and Europe and a significant derating of emerging, with countries like Brazil seeing their investment grade status put in check. Moreover, emerging markets were the brunt of bad news after bad news while the U.S., Europe and Japan, mainly thanks to the handiwork of Central Bankers, have consistently been the source of good news.