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BlackRock Says Bears Blundering by Exiting Emerging Markets

BlackRock Inc.’s Sam Vecht 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 “are selling emerging markets which have very low valuations, significant dividend yields but have underperformed in recent times,” Vecht, London-based manager at BlackRock Emerging Europe Trust Plc, said in e-mailed comments yesterday. In exchange, they’re 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.”