dr gs sood
ALL asset classes, except the dollar, witnessed a steep fall across the globe on fears that the Federal Reserve may begin winding down its stimulus measures. The decline actually started from the second half of May when the Fed for the first time indicated that it would scale back $85 billion in monthly bond purchases if the recovery in the US continued. This strengthened the dollar pushing up US bond yields making foreign investors pull out funds from emerging markets’ equity and debt. However, the high allocation by fund managers may work as a limiting factor as they are already severely underweight on emerging markets. Read more..