Emerging Markets Change Course

I see that back in September 2013 when I was last blogging frequently most of the investing world was giving up on emerging markets and wrote of taking a more positive longer term view.

Bloomberg reports on recent moves in emerging markets

Investor sentiment toward emerging-market stocks is improving after more than three years of underperformance versus their developed-nation counterparts. The MSCI emerging markets index has climbed 9.8 percent since mid-March, more than twice as much as the MSCI World Index. U.S. exchange-traded funds that invest in developing nations have lured about $8.7 billion of inflows during the period.

From the WSJ here

The speed with which investors appear to have forgotten losses of up to 30% in some markets has been startling. Money is flowing back into emerging markets at the fastest pace in more than a year.

Mutual and exchange-traded funds focused on emerging markets added a net $13.2 billion in April and May, according to data from EPFR Global through May 26. That is the biggest two-month rise since February and March 2013, and follows 10 straight months of net selling.

"All the stuff that got beaten up last year and in January this year is springing back," said Angus Halkett, emerging-market debt portfolio manager at Stone Harbor Investment Partners, which has $62.5 billion of assets. "It's like early 2013 when everything was fine. And we saw how quickly that sentiment evaporate

graph from wsj

My analysis coming in the near future