Hedge funds exit emerging market assets as real money pours in
Lima
SHORT-TERM investors are escaping emerging markets ahead of a likely US interest rate hike this week amid concern that a strengthening dollar will undermine credit quality in developing nations.
Meanwhile, longer-term investors have increased their exposure, pointing to equity and currency valuations that linger below their five-year averages and arguing that developed nations from the US to France carry greater political risks.
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