Merrill Lynch sees overweight position in emerging markets
As worldwide investors look to position themselves to benefit from a forecast recovery in the global economy, Merrill Lynch, the US investment giant, has highlighted a significant shift in strategy towards emerging markets. April saw a significant move with global asset allocators "massively" raising their overweight positions in global emerging markets. This is a very significant move because emerging markets have been very depressed to say the least and will only benefit as and when the global recession ends.
The move towards emerging markets would also indicate a renewed confidence in the sector which will see increased investment and liquidity available. However, before we all rush in to increase our weightings to every emerging market in the world it is worthwhile noting that different emerging markets will perform differently in the short, medium and longer term. Research still needs to be done with regards to your investments and as ever it is essential that professional financial advice is sought at the earliest opportunity.
While nobody wants to miss "a significant investment opportunity" we all need to be aware that markets have and continue to change very quickly. While those who "dive in now" and see a recovery in the global economy would benefit more than most, there are many who would prefer to wait until the signs are clearer that the global recession is over the worst.
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