Charting fear in emerging markets….

fear psycho

Yep, emerging markets have been a market shock year to date but is it as bad as 2008-2009? Europe growing again, US chugging along and markets quietly recovering their poise. This hardly feels like collapsing trade, frozen credit markets and insolvent banks/sovereigns of 2008.

But check out this chart from Barclays Research showing Emerging Market franchise valuations back at GFC crisis levels….

And this statistic of “fear” also caught our eye via CNBC….

While the pace of fund outflows has been slowing this month after a tough January, around $21.7 billion has flowed out of emerging market equity funds from the beginning of the year through February 12 after $15.2 billion in outflows in 2013,

So one month of fearful outflows has exceeded the entire inflows for 2013. That sort of stampede can push valuations to very interesting levels….

 

 

Value

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