Fragile Five

“The five markets with most significant current account deficits – India, Brazil, Turkey, Indonesia, South Africa – constitute 9% of world GDP and less than 7% of world equity market cap – foreign banks’ exposure to them seems to be small – hence unlikely to derail global growth, and global equities.” (Goldman Sachs)

Fragile Five

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Emerging Markets

“In the week ended November 13, investors pulled $4.7 billion out of emerging-market equity funds, marking the largest outflow from the asset class in 20 weeks. Meanwhile, EM debt funds saw $1.8 billion in redemptions — the most in 10 weeks.”

DM vs EM