This Is What Can Kill the Emerging Market Rally
- As bonds, stock and currencies rally, some see overheating
- DoubleLine is latest firm to make bullish emerging-market call
Goldman's Patel Sees Investors Looking at Latin America
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Dissenters in the face of the relentless emerging-market rally are speaking out.
A drop in oil prices and China’s crackdown on leverage -- spurring this month’s rout in industrial metals and iron ore -- is setting the stage for a correction in developing-country assets, according to a growing chorus of investors and analysts. While still in the minority, they warn a tide of capital inflows and a jump in bullish positions have left valuations at an inflated level after gains in emerging-market stocks, bonds and currencies this year.