Time to buy emerging market stocks: Barclays

London

A BUY signal seen only four times in the past 12 years is flashing again in emerging market stocks, according to Ian Scott of Barclays Capital. Things got so bad, they're going to turn around, according to the London-based equity strategist.

In the worst quarter for equities in four years, money flows in emerging market funds are trailing developed nations by a degree unmatched except in 2004, 2005, 2008 and 2014, Mr Scott said, citing EPFR Global data. Yet on every one of those occasions, shares outperformed developed markets by at least 9 per cent in the following six months, he said.