Moscow. December 15. Investor interest in emerging markets is still very low, according to a survey conducted by Bank of America Merrill Lynch among Fund managers with 4 to 10 December 2015.
“Investors believe that the growth in the value of assets in emerging markets will be limited due to weak prospects of growth of profits in emerging markets, a significant slowdown in the Chinese economy, and the strengthening of the US dollar and higher interest rates on debt markets”, – stated in the review of Bank of America Merrill Lynch.
Fund managers, although considered “long” positions on the US dollar the most congested in the market, believe that the U.S. currency will strengthen to until the fed completes a cycle of raising rates. More than half of respondents expect the fed will raise rates at least three times in the next 12 months.
“The strong dollar is clearly visible in the investments in all types of instruments, regions and sectors of the economy. Except that extremely soft policy of the fed and low profit American issuers are able to shake the confidence of investors in prospects for the dollar in 2016,” – said chief investment strategist Bank of America Merrill Lynch Michael Hartnett.
Investors try to avoid risk, increasing the share of cash in portfolios: in December it grew to 5.2% from 4.9% in November.
During the crisis of 2008 the share of cash in the portfolio stood at 5.5%.
In addition, investors continued in December to reduce investments in commodities markets, which also indicates a low appetite for risk.
Among the risks with unpredictable consequences most investors are concerned about the likelihood of a recession in China, geopolitical risks and risk of the debt crisis in developing countries.