Need to Know: ‘Emerging markets have a China problem.’ This strategist favors India, which just hit a record.

by | Sep 14, 2023 | Stock Market

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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