Reuters UK- Investors are responding to the sharp falls on equity markets around the world by shifting from what are now being seen as vulnerable emerging markets to relatively safer developed ones.
The moves — which can be seen in a variety of investment flow data — are evidence that an earlier belief that emerging economies and markets could decouple from troubles in the dominant U.S. economy is on rocky ground.
In its monthly poll of fund managers, released last week, Merrill Lynch noted that there are now more investors overweight U.S. equities than there are those who are overweight emerging markets.
