News, analysis and personal reflections on the markets & the financial sector

Monday, October 11, 2010

Investors pour money into emerging markets

Investors are rebalancing their portfolios by rushing into emerging markets in search of higher-yielding assets. Some investors, however, are warning about risks associated with the emerging-market boom. Meanwhile, finance chiefs and central bankers are debating currency issues, including intervention.

Emerging markets are still under-represented in global market indices. For example, emerging markets account for $3 trillion, or only 15 percent of market capitalization of the benchmark MSCI world index.

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