The WSJ ran a story this morning quoting some large emerging market funds who are bullish on emerging markets. What would you expect them to say? If investors want to invest with style box money managers that is their choice but don’t let what they say about their investment sector sway you in any way.
Money does go where it is treated best and it hasn’t been treated well in emerging markets this year. That being said, if this rally continues then at some point the US is going to start looking overvalued vs. emerging markets and you will see them catch up. If the rally doesn’t continue then emerging markets could get hammered some more.