Agriculture, Bonds, Commodities, Currencies, Emerging Markets, Energy, Metals, Stocks

Sell-Off In Commodities And Emerging Markets Probably Over Says BofAML

Fund managers are bailing on emerging markets, commodities and energy-related stocks at a record pace, suggesting that capitulation could be at hand, according to the latest fund-managers survey from Bank of America Merrill Lynch,” MarketWatch reports.

 

Chart 1

Fears on Greece have been replaced by fears of Chinese recession / EM debt crisis. This has manifested in capitulation in EM equities and energy,

said Michael Hartnett, chief investment strategist at Bank of America Merrill Lynch Global Research.

According to MarketWatch:

Capitulation is defined as the moment when everyone who wants to exit a particular asset class is already out, creating bargains. Prices should then bounce off those lows.

Chart 2

The relative positioning of emerging markets to developed markets at -55% is the lowest on record since 2001.

Chart 3

Read more from MarketWatch.

Discussion

Trackbacks/Pingbacks

  1. Pingback: Sell-Off In Commodities And Emerging Markets Probably Over Says BofAML | Kenneth Carnesi - August 19, 2015

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

Follow Us On Social Media

Google Translate

Like Us On Facebook

Our Discussion Groups

Facebook Group
LinkedIn Group

Follow EMerging Equity on WordPress.com

Our Social Media Readers

Digg
Feedly
Follow

Get every new post delivered to your Inbox.

Join 271 other followers

%d bloggers like this: