Nearly five years later the same countries are showing continued growth while the United States, UK, France and more trudge along. One would suspect that investors would look to the strong growth of emerging markets for financial gains.
Turns out the opposite is happening. As the US begins to get back in order money is rushing out of emerging markets, reports the Wall Street Journal.
“It feels like the party is ending,” said Howard Wong, managing director at Doric Capital Corp. in Hong Kong.
Facing the loss of foreign capital, central banks in these emerging markets have attempted to prop up their home currencies.India recently took actions to prop up its falling currency and Turkey is now looking to gain investments after turning away money for the past four years. Problems are found elsewhere. The South African rand is down against the dollar, so is the Brazilian real.
Only a few months ago investments were streaming in. So what happened?
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