Bank of America: Emerging markets may see massive inflows in early next year

Golden Finance reported that Bank of America said that as more and more signs of resilience in emerging economies, emerging markets may usher in larger inflows of capital early next year, which will drive further transfer of funds from U.S. assets. "People will become more optimistic early next year as they will confirm that the impact of trade tensions on the economy will be limited," said David Hauner, head of global emerging markets fixed income strategy at Bank of America. “Even small diversified investment flows from the United States can have very significant effects.” Hauner has maintained a bullish stance on emerging markets since the first quarter. He believes that this asset class will benefit from a weaker dollar, local central banks still have room for further interest rate cuts, and global funds' historic low allocation to emerging markets. Brazil, Mexico, Colombia, Türkiye and Poland will be the main beneficiaries of foreign capital inflows, Hauner said. (Jin Shi)