EEM looking interesting this week, any thoughts on capital flows?
Watching the action on $EEM today, up over 4% at 63.59. It's not a massive move in isolation, but the relative strength compared to some other markets has me thinking about capital flows into EM for diversification or potential higher growth plays. Are people starting to rotate out of developed markets after the recent run, especially with rate hike talks cooling down a bit?
It's still early days, and $KWEB is only up about 0.94% at 28.06, so it's not a uniform EM story. But that $EEM bounce from the low of 62.295 to 63.63 got my attention. Wondering if anyone's seeing similar patterns or considering how this might play into offshore banking and corporate account strategies for clients looking to tap into these markets. Any insights on that front?
That's an interesting point about capital flows. I've been wondering if the dollar weakening might also be a factor driving some of that interest in EMs, making those assets more attractive for foreign investors.