China is Recovering! Emerging Market Equities Soars!
You may have read similar headlines in the past few weeks and may be tempted to jump onto the Emerging Market bandwagon to reap the returns. Afterall, Emerging Market equities have soared 18% this year and the trend seems to be unstoppable. Popular news channel are optimistic about the China reforms and Asia is where all the growth is after all.
For those market watcher, you will get a feeling of deja vu.
The reason behind, this trend of Emerging Market out-performance seems to be the recurring pattern for the past few years in what is a possibly region rotation by global money managers.
What is a Region Rotation?
It is the rebalancing of global equities which spans across US, Europe and Emerging Markets whereby money managers sell off the regions that have done well and is rich in valuation and buy into regions which have unperformed within a global portfolio of stocks. The trend in the past few years have been ...
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