Emerging-Market Fund Flows Signal Drop to Bank of America – Bloomberg 12-14-12

Salient to Investors:

Michael Hartnett at Bank of America Merrill Lynch said emerging-market stocks are poised to fall after weekly emerging-market fund inflows were the biggest in 10 months and triggered a Sell signal – that 4-week inflows totaling at least 1.5 percent of assets under management precede market declines. Hartnett said the most overbought are the most vulnerable, including Turkey, Mexico, China, and India.

John-Paul Smith at Deutsche Bank said emerging markets will lag behind developed nations in 2013. Mark Mobius at Templeton Emerging Markets Group said emerging markets stocks will climb in 2013 as world central banks add money and investors seek higher returns.

The MSCI Emerging Markets Index trades at 12 times estimated earnings versus the MSCI World at 13.7 times.

Read the full article at http://www.bloomberg.com/news/2012-12-14/emerging-market-fund-flows-signal-selloff-bank-of-america-says.html