Herro warns of speculative bubble in emerging markets

Eminent global investor David Herro has poured cold water on the resources and emerging markets stor...

Eminent global investor David Herro has poured cold water on the resources and emerging markets stories as he looks to financials and technology stocks for future returns. Herro, who runs the Oakmark Global Large Cap Value fund, described the cash flowing into the utilities, mining and emerging markets, especially China, as a "quintessential speculative bubble." "If you look at the money gushing into the emerging markets, at the valuations and the IPO activity, it all smells very rotten," he said. He has backed this by zero weighting both the energy and materials sectors in his Luxembou...