Emerging Markets May Be Heading for ‘Risk-Off’ Flows, IIF Warns
- Worries abound about U.S. presidential vote, IIF’s Fortun says
- Bonds added $12.9b in inflows, stocks lost $10.8b in September
This article is for subscribers only.
Investors may be on their way out of emerging markets as uncertainty stoked by the U.S. election adds to risk aversion, according to the Institute of International Finance.
“Our data shows that a big ‘risk-off’ is brewing in EM,” wrote IIF economist Jonathan Fortun in Washington. “We are tracking high-frequency outflows from EM in the final weeks of September almost as big as in the 2013 taper tantrum.”