posted Apr 27, 2012, 1:30 AM by Solar Life
updated Apr 27, 2012, 1:46 AM
Q1-2012 US Investors transferred $5bn
from US equity funds
to Emerging markets stock funds
April 27, 2012
Dumb money still flocks to emerging markets
Commentary: Investors pull out of U.S. even as it outperforms
Even in the first two months of 2012,
U.S. investors yanked $5.3 billion out of U.S. equity funds and
funneled $5.2 billion into emerging-market stock funds.
So, while U.S. stocks were quietly recovering and outperforming, investors dumped them for an asset class that has lagged the entire time. U.S. pension funds
We still see pent-up demand from U.S. pension funds to increase allocation to emerging markets.”
. Nobody ever got fired for buying Petrobras, right?
In fact, U.S. mutual fund investors pulled an astonishing $464.9 billion out of mutual funds focusing on U.S. equities from 2007 to 2011, according to the Investment Company Institute. They stashed almost $800 billion into bond funds during that period, of course, but they also poured $73 billion into emerging-market equity funds
But BRICs have als problems...MSCI BRIC Index Fund
Because everything isn’t rosy for emerging markets, particularly the BRICs that stole all the headlines just a few years ago. The iShares MSCI BRIC Index BKF +0.35% ETF trades below its 50- and 200-day moving averages, an ominous sign.
iShares MSCI BRIC Index Fund NAR: BKF
Related history 2011
April 8, 2011
7 investments that show the BRIC is back
Commentary: Foreign investments to consider now
world banking revolution