BlackRock says investors are ignoring the old adage of buy low, sell high when it comes to emerging markets

BlackRock says investors are ignoring the old adage of buy low, sell high when it comes to emerging markets. Sam Vecht, a London based manager for BlackRock, says investors are following the herd in selling emerging markets to invest in the most-developed economies, a strategy that has historically yielded underwhelming results. Investors have withdrawn a net $13.5 billion from U.S. exchange-traded funds that invest in emerging markets this year, including $1.3 billion in the five days to March 17. Vecht, says in exchange investors are buying assets in the developed world, which has relatively high valuations, potentially limited long-term earnings growth and where markets have just gone up rather fast. BlackRock has recently started to favour emerging markets such as Turkey, citing the allure of factors from low stock valuations to higher interest rates. Read More: (VIEW LINK)


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