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“Wall of Money” Is Heading for Emerging Markets, IIF Says

  • Capital flows to emerging markets turned positive in January
  • Investors say EMs will do better in 2019 than last year: Citi
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Investors of almost every stripe appear to be turning more bullish on emerging markets after withdrawing funds last year, according to the Institute of International Finance.

High frequency flow trackers suggest a “wall of money” is coming back to developing markets due to a dovish Federal Reserve, thawing trade relations and easing concerns over global economic growth, IIF’s analysts Jonathan Fortun and Tariq Khan wrote in a research note published on March 1. “The hunt for yield is clearly underway again,” the report said.