Emerging markets are drawing the attention of investors again, albeit in a muted sense. The result of the US presidential election, together with low- or negative-yielding interest rates in predominantly developed markets, may just be the boon that emerging-market assets need.
In late September, the World Economic Forum reckoned that there was $13.7tr parked in assets yielding negative returns.
That is roughly the size of China’s GDP. But we will be comparing income statement with balance sheet items. For investors, and the growing ranks of pensioners in developed markets, this doesn’t bode well for the near future.