"No man can become rich without himself enriching others"
Andrew Carnegie
Monday, July 9, 2012
China slowdown weighs on emerging market funds
China's FIRST McDonald's (Photo credit: flickr.Marcus)
AsChinaslips, the second-half performance for many emerging market mutual funds might soon follow. In recent months, investors have been pulling hundreds of millions of dollars out of stock funds that invest mainly in companies associated with the big four emerging market nations ofBrazil, Russia, India and China. But it's China that is causing most of the worry for fund investors, amid signs that the world's second-largest economy is slowing more sharply than expected. Even emerging market bull Jim O'Neill, chairman of Goldman Sachs Asset Management, who famously coined the BRIC acronym, said he's been a bit surprised by the slowdown in China. But that said, O'Neill remains convinced China's economy will be more than enough to make up for any weakness in the other BRIC nations. "It is making the trajectory that I predicted difficult to stick with," O'Neill said about the slowdown. But he added, "I find it hilarious that people question the thesis on the basis of two quarters."... Continue to read.
BSE SENSEX and NIFTY traded lower on MONDAY as investors booked profits over the weaker global cues. Slower pace in global economy growth and sluggish U.S. job data along with poor inflation report from CHINA weighted over the sentiments as hit a 29 months low. Investors looked cautious over 5350-5400 level for NIFTY, expect difficult to breach unless a strong dose of positive news. Commodity Tips
BSE SENSEX and NIFTY traded lower on MONDAY as investors booked profits over the weaker global cues. Slower pace in global economy growth and sluggish U.S. job data along with poor inflation report from CHINA weighted over the sentiments as hit a 29 months low. Investors looked cautious over 5350-5400 level for NIFTY, expect difficult to breach unless a strong dose of positive news. Commodity Tips
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