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Sunday, October 26, 2014

This One is A Little Perplexing


Global turbulence triggers flight from EM equities

Global market turbulence has triggered the biggest outflows from emerging market equities in more than a year.
Investors removed $9bn from stocks and shares across Africa, Latin America, eastern Europe and Asia in October, according to figures from the Washington-based Institute of International Finance, which tracks all cross-border investment into developing countries by non-residents.
But here are returns for October
GMF emerging asia  +2.1% (blue)
VWO overall emerging markets  +1.4%(green)
SPY S+P 500 +1.1% (gold)
One month growth of $100,000 total return
This comparison is interesting flows into emerging markets (top) and price movements for VWO (bottom) seems to be evidence of quite a bit of performance chasing buying high and selling low

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