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Wednesday, November 11, 2009

Emerging Markets: Bubble or On the Way to a Return to Trendline ?

Perhaps the bubble type activity was on the downside as emerging markets plunged in sympathy with the US and developed markets . The markets were not decoupled but looking at economic performance in the past year the growth stories seem to be decoupled.

Overdone on the upside or just reverting to the long term trend ?

The second graph shows inflows into emerging markets mutual funds and remember that is only a fraction of the inflows into emerging markets

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