Tired of the fiscal cliff game of chicken, many investors parked their money outside of domestic venues, leading to a boon in emerging market funds, according to Teresa Rivas at Barron’s
Rivas cites the analysis released by Marketfield Asset Management
, which notes “that recent weeks have seen investors bypass U.S. equities, given the political uncertainty.”
writer argues that “this might be problem for domestic stocks at any time, but the political wrangling sent funds elsewhere at the crucial end-of-year period when institutional investors are making big allocations.”
For example, the iShares MSCI Emerging Markets Index
. Inflows jumped as the end of the year approached, pushing its market cap above $49 billion, while shares outstanding increased at their fastest clip since December 2008.
Read more of the analysis in Barron’s
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