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2 Sep 2015
Getting more cautions on EM's - BBH
FXStreet (Guatemala) - Analysts at Brown Brothers Harriman explained that given the prospects of Fed tightening and continued commodity weakness, they remain cautious on EM equities as we move further into Q3 2015.
Key Quotes:
"Measures of foreign investment inflows to EM reversed in August."
"Since our last quarterly model update on July 2, our proprietary EM equity portfolio has fallen -19%, outperforming MSCI EM, which has fallen -22.1% during the same period."
"Our 5-rated grouping (underperformers) for Q3 2015 consists of India, Egypt, South Africa, Russia, and Brazil."
"Our 1-rated grouping (outperformers) for Q3 2015 consists of Korea, Hong Kong, China, UAE, and Taiwan."
Key Quotes:
"Measures of foreign investment inflows to EM reversed in August."
"Since our last quarterly model update on July 2, our proprietary EM equity portfolio has fallen -19%, outperforming MSCI EM, which has fallen -22.1% during the same period."
"Our 5-rated grouping (underperformers) for Q3 2015 consists of India, Egypt, South Africa, Russia, and Brazil."
"Our 1-rated grouping (outperformers) for Q3 2015 consists of Korea, Hong Kong, China, UAE, and Taiwan."