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Fears on Greece have been replaced by fears of Chinese recession / EM debt crisis.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.

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

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