Emerging markets losing charm? Why FPIs are shifting focus to developed markets
CLSA in a recent note stated that the US and UK markets may show investor preference in the coming months given the lead in vaccination.
Synopsis
The appeal of emerging markets is waning due to the slow pace of vaccination amid the emerging risk of a new wave of the pandemic.
ET Intelligence Group: Foreign investors are gradually raising wagers on the developed markets. The MSCI World index — a gauge of equity performance of the developed market (DM) — has outperformed the Emerging Market (EM) index by 7.3% since the beginning of March 2021, show the data from Bloomberg. This is in contrast to the earlier trend wherein backed by the scope for higher earnings upgrades, the EM index had outpaced the World index by
