A pendulum
23 June 2004 | Investments | General | Angelo Coppola
Remarkably, global financial markets have experienced a swing of the pendulum.
Martin Jankelowitz, head of market and economic research at Investment Solutions, reports that after a sharp reversal in the so-called "reflation trade", investors appear to be comfortable re-implementing their positions.
The emerging-market bond index spread over US treasuries reached a record 3.84% low in January, then jumped sharply to 5.69% in May before strengthening to the current 4.79%.
Emerging-market equities ($) declined by 20% between mid-April and mid-May, but have since appreciated by 6%.
