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Emerging markets stock ETFs have most 5-day inflows in 5 years

“Demand for emerging markets assets has exploded as the Fed has turned dovish,” said David Santschi, director of liquidity research at TrimTabs” writes Reporter Editor for marketwatch.com. Emerging market bond ETFs had inflows of $900 million, or 3% of assets, in the five trading days ended Feb. 8, the biggest five-day inflow on record.Emerging markets equity ETFs had inflows of $3.5 billion, or 1.9% of assets, during the five trading days ended Feb. 5, the biggest five-day inflow since April 2014, according to TrimTabs Investment Research, helped by the Federal…

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Emerging markets are red hot right now. Three investments for the rest of 2019

“This is one of the best times to diversify into emerging markets,” said Luca Paolini, chief strategist at Pictet Asset Management” writes unknown author for cnbc.com. Emerging markets have been one of the hottest trades of the year thus far.Investors thinking about betting in emerging markets should look at Brazilian stocks, Mexican bonds and banks in the space, according to strategists and analysts. “Everything is pointing to outperformance in emerging markets.”.  Source: cnbc.com

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Emerging markets set for a ‘rally’ after last year’s rout, says strategist

“With the U.S. Federal Reserve pledging to be “patient” in future rate hikes, emerging markets should do better this year, and may in fact even have “a decent rally,” one strategist told CNBC on Monday” writes -mary Nicola for cnbc.com. Last year, economic troubles in Argentina and Turkey, as well as the Fed tightening monetary policy, had caused a selloff in several emerging market currencies.Some emerging market stock indexes also saw steep declines.But those markets should turn around this year, said Mary Nicola, a G-10 foreign exchange and Asian fixed…

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‘The emerging opportunity of 2019’: One expert says tech is passing the baton to an unloved area of the market that’s set to explode higher

“But one market expert says that dominant position will move from tech to emerging markets in 2019” writes Joe Ciolli for businessinsider.com. The nascent era of slowbalisation may be an opportunity for other emerging markets to shine.”. “Economic growth, and especially emerging markets growth, is primarily an internal matter,” Deluard said.”I suspect that the positive effects of free trade are routinely over-estimated by mainstream economists, especially when it comes to emerging markets,” Deluard said.He continued: “Emerging markets’ mountains of US dollar debt, which are still viewed by many as the…

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The CEO of UPS reveals the bright spot that many anxious retailers and transportation companies are missing

“There are a lot of companies seeing danger signs on the international side of business,” Abney said” writes Rachel Premack for businessinsider.com. Cross-border e-commerce shipments are growing at five to seven times the rate of global gross domestic product, UPS has said.Globally, the fastest-growing e-commerce markets are Indonesia, Mexico, and the Philippines.Abney highlighted the expanding middle class in emerging markets like China and India and their growing demands for e-commerce. Source: businessinsider.com

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Emerging markets brought the bears, now they have the bulls

“You just have more volatility and a faster moving investor base in emerging markets,” said Kiran Nandra-Koehrer at Pictet Asset Management” reports businessinsider.com. During the global financial crisis, emerging market stocks dropped the 20 percent that defines a ‘bear’ market three weeks sooner than the main global indexes and started to bounce back four months earlier.China’s heavy falls and even bigger hits for the likes of Turkey meant MSCI’s EM index was a bear market by September, whereas the all world index held out until Christmas.U.S. tech bulls were still…

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One new way to take advantage of a breakout in emerging markets

“The EEM, the best-known emerging markets exchange-traded fund, might not be the optimal way to play the space, though” writes Keris Lahiff for cnbc.com. Over the past three months, the EEM emerging markets ETF has rallied 4 percent and shrugged off the extreme volatility and sell-offs that plagued U.S. markets through the end of last year.One way to play the emerging markets is through Direxion’s relative-weight ETFs, says Andrew McOrmond, managing director of WallachBeth Capital.The RWED Emerging Over Developed Markets ETF is 150 percent long emerging markets and 50 percent…

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‘World power is shifting’: A self-made Lebanese billionaire explains why all the best business opportunities are in the East, even as the trade war rages

“After all, he’s a self-made billionaire whose telecom company has seen its greatest success in emerging nations” writes Joe Ciolli for businessinsider.com. It’s a new attitude, and one Haidar says reflects vast growth potential in these emerging nations.He’s seen the doom-and-gloom headlines calling for a global growth contraction, and he’s not overly worried. Source: businessinsider.com

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Government debt hits record $66 trillion, 80% of global GDP, Fitch says

“Governments are continuing to run up huge debt levels, with emerging countries helping push the total global IOU to 80 percent of gross domestic product” writes Michael Nagle for cnbc.com. “Government debt levels are high, leaving many countries poorly positioned for financial tightening as global interest rates begin to move higher,” James McCormack, Fitch’s global head of sovereign ratings, said in a statement.After a decade in which global central banks kept interest rates low and made running up debt far less expensive, monetary policy is in a normalization period. Source: cnbc.com

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The best-performing investment of 2018 came as a shock to everyone — and the stars are now aligned for its continued dominance

“Developed economies’ curves flattened even further in 2018 and many emerging economies were forced to hike short-term rates to stop capital flight this summer.”” writes Joe Ciolli for businessinsider.com. Third, Deluard points out that global yield curves are flattening.Second, Deluard says cash is enticing because real rates have been rising and positive in much of the emerging world.No matter how you slice it, there was a frustrating lack of yield in the global marketplace last year. Source: businessinsider.com

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