Why experts see new opportunities in emerging markets

Frankfurt At first glance, emerging markets are a problematic investment in a loss-making stock market year. The economic downturn and the direct and indirect consequences of the sharp rise in prices are causing massive uncertainty among investors. However, those who invest their money with a willingness to take risks can benefit from the medium-term development. The depressed prices now offer entry opportunities again.

The inflow and outflow of capital are particularly decisive for prices in emerging countries. Last month, investors sent another $9.2 billion net into emerging markets, according to data from the International Banking Federation (IIF).. However, only 1.7 billion of these were for shares, the rest for bonds.

The big outlier was China, with outflows of $7.6 billion from the stock market and $1.2 billion from the bond market. For years, China attracted capital at the expense of other emerging economies, but the trend has reversed since Russia’s invasion of Ukraine, the IIF said.