Bank of America’s global fund manager survey this week reported the biggest ever push into the U.S., and exit from emerging markets, on record. That result didn’t come as a big surprise to Matt Orton, chief market strategist at Raymond James Investment Management. “Emerging markets have a China problem,” says Orton.
Speaking from the sidelines of a Jefferies venture-capital conference in Tel Aviv, Orton shares a negative outlook on China, citing the weakness in activity since the economy re-opened, the real estate debt issues, the regulatory environment as well as its market concentration issues. The U.S., by contrast, has been one of the best-performing markets this year, and a soft landing now looks more likely than it did at the beginning of the year. “Because so many people were under-invested in the U.S., you can get that almost chasing as you go into the end of the year, because a lot of managers are underperforming.”
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