The International Finance Association (IIF) said on Thursday that "large amounts of money" will flow into emerging market assets as the Federal Reserve (Federal Reserve) has reduced the risk of soaring global borrowing costs.
The IIF said that after the Fed confirmed a change of course last week, its high-frequency indicators showed that emerging market inflows were "significantly soaring".
The IIF economists said in their report that "recent events seem likely to lead to a resumption of the influx of'substantial funds'into emerging markets".
They said that funds could flow in all directions, but Brazil and Russia may be particularly prominent, where investors have been esteeming.
"The pursuit of earnings will make adjusting positions an important consideration," economists said. They also said that South Africa had bought too much assets compared with Brazil and Russia.
Emerging markets have gone through a tragic 2018, and this year has begun with a rainbow of momentum.
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