Capital flees emerging markets

Global investors are offloading emerging assets for more liquid securities such as U.S. Treasuries in what is being billed as one of the biggest capital exoduses since 2008.

Deepening fears over global recession and Eurozone debt crisis have hammered emerging stocks, which have fallen 22% since August 1, creating the perfect opportunity for Canadian investors to make a structural shift of portfolio allocations in favour of emerging markets.

Canadian investors do recognize the strong growth potential of emerging markets, but studies show when it comes to investing in these economies, few are taking full advantage of the opportunity.

Advisors might want to consider some of these options to help clients understand the need for emerging markets exposure.

Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.