October 22, 2007
Sometimes predictions work.
I am moderately pleased to note that that my thesis that emerging markets might prove a "safe haven" this round seems to be proving out and in flighty areas with:
For the third week in a row, emerging market equity funds absorbed more than $5bn (£2.4bn, €3.5bn) as investors continued to bail out of underperforming developed market asset classes and head for cash, emerging markets, or, to a lesser extent, commodities such as gold, said EPFR Global , which tracks fund flows.
Since the fourth week in August investors have put almost $24bn in emerging funds, more than $28bn in money market funds and $895m in commodity sector funds.
As I said back in my August note, the problems in structured finance stabbed developed market advantages in the heart.
At the same time, I don't think this is sustainable in listed markets, and moving the money to private markets - venture funds and private equity funds requires identifying rare skills... But on the other hand, investors have been pouring into China on faith alone, so....
Posted by The Lounsbury at October 22, 2007 07:42 PM
Filed Under: Biz - Private in MENA
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Am starting to think those crackpots at The Daily Reckoning, who won't stop sending me emails, were right when they've said to move into commodities for the last couple years. Not so sure about gold--they're big gold bugs.
Well, I don't have the money to do it anyway, and God knows how I'd invest in commodities from the Czech Republic. Maybe beer futures...
Posted by: Antiquated Tory at October 26, 2007 03:04 PM