Traders Flee Emerging Markets at Fastest Pace Since 2008
- Investors have sold $40 billion of assets in the third quarter
- Biggest outflow since fourth quarter of 2008, IIF data show
Forget 2008, Emerging Markets Feel More Like 1974
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Investors have pulled $40 billion out of developing economies in the third quarter, fleeing emerging markets at the fastest pace since the height of the global financial crisis.
The quarterly outflow was the first since 2009 and the biggest since the final three months of 2008, when traders sold $105 billion of assets, according to the Institute of International Finance. The retreat came as data signaled faltering Chinese economic growth, commodity prices slumped and the Federal Reserve moved closer to an increase in the near-zero U.S. interest rates that have supported demand for riskier assets in developing nations.