The Wall Street Journal
Return capital to emerging economies Buenos Aires, Argentina12 of May 2009 with positive signals that have been emerging in recent days from the U.S. economy, the prospects for global economic recovery have improved in one manner no less. As not like investors too long time hidden until you pass the storm with first rays of recovery are coming out hurry to take positions at greater risk to be the first to benefit from the recovery of the economies. John Lyons, Alex Frangos and Alastair Stewart plotted clearly in a note to The Wall Street Journal, what is happening in the emerging markets which fail to understand even why you are returning the external capital with so much enthusiasm. With economies slowly turning toward recovery, investors are changing their positions and we will slowly begin to observe a disarmament of the more conservative positions.
For instance, in seven weeks, investors disarmed their portfolios in U.S. investments by $9,800 million to orient them towards more profitable markets. It is not that they do not value security, but investors prefer to search widely for profitability since it is what is in its essence. The time of defending the capital being finalized according to which investors have understood. For them again the stage starts search for profitability. And what better idea that resorting to emerging markets where you can find lots of very good profitability investment opportunities. Logically, in emerging markets where profitability is, it is achieved by accepting a certain level of risk. Even this risk may not be so easily measurable after the shocks that have experienced the economies crisis, and product which not yet have achieved release. Although there is uncertainty about the risk that will be assuming the capitals that are directed towards emerging economies, it can be assumed that such risk is reduced by the situation of departure of the crisis.