Barclays Capital's Nathan Bance fears emerging market equities could move towards bubble territory as QE drives a wall of money towards the developing world.
He says this liquidity will eventually force central banks to drive up interest rates leaving equities most at risk of a sustained sell off. The director of BarCap's UK investor solutions says the next few years could replicate the time between 1993 and 1994 when interest rates were rising and emerging market equities were falling. "We do not think QE is required as it will lead to problems in asset markets going from fair value to bubble territory. We will be swinging from feast to famine. "We currently have no emerging market exposure as we are worried it is most at risk of movin...
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