Foreign Investors’ Restored Confidence in Emerging Markets in 2014
After a disastrous year in 2013, characterized by capital outflows from emerging economies, global investors’ confidence in emerging markets seems restored in 2014. More and more money has been flowing to Latin America and Asia, causing rising regional stock indices and lower bonds yields. For example, the stock index of India has reached a near-record level. This is in sharp contrast with developments last year when emerging stock indices, exchange rates and (most) interest rates increased.