Versatility is Key to Emerging Markets

Investors who put money into emerging markets at the start of 2013 have had a miserable time. While shares in developed country markets forged ahead on continuing evidence of economic upturn, emerging markets went into reverse, on what is now a wearisomely familiar set of excuses: disappointment over macro-economic data, volatility (any remotely concerning turn of events world-wide is the trigger for sell-off) and capital repatriation to Western financial markets on expectations that interest rates are likely to rise sooner than expected.

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-Igor P Purlantov

Investors Cling to Frontier Markets

As emerging markets tumbled this year, the riskiest country groupings on the fringes have been a haven. Small markets, local stories and in some cases pegged currencies backed by strong central bank reserves have shielded frontier markets from the worst of the emerging market rout.  Lebanon, Tunisia, Bulgaria, Lithuania, Qatar and Kuwait are among the world's lesser developed markets and are outperforming more mainstream emerging markets in the most recent storm.

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Quiet Bull Calls on Emerging Markets

For much of 2013, being bearish on emerging markets was the right call. Stocks in developing economies from the BRIC nations to the ASEAN group to CIVETS and nearly any other catchy acronym proved to be major disappointments as equities in the U.S., Japan and some other developed markets soared.  Weakening currencies, slumping commodities demand and current account and fiscal deficits prompted investors to pull $13.7 billion from emerging markets bond for the year through December 18, while $6.3 billion has left emerging market equity funds over the same period, CNBC reports, citing Jefferies data.

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Abu Dhabi Fund ADIA Turning to Emerging Markets

Abu Dhabi Investment Authority is reducing target exposures to developed market stocks and looking for growth in emerging markets, the sovereign wealth fund that is one of the world's biggest investors said on Monday.

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