EMD most 'overhyped' asset class but outlook for property improves

Fidante Capital report

Local currency emerging market debt and hedge funds are the most "overhyped" investments, with the "pain" in emerging markets more widely set to continue in the third quarter contrary to market expectations, according to research by Fidante Capital.

The firm, which is the international capital markets arm of Fidante Partners, used Google searches, ETF fund flow information and closed-ended fund premiums to create a quarterly ‘hype index', which formed the basis of its analysis alongside a momentum index. Alongside the "overhyped" asset classes, the index grouped emerging market equity, hard currency emerging market debt, high yield and infrastructure into the "despondency" category, indicating investors should "stay away" from these markets. Joachim Klement, head of investment research at Fidante Capital, explained emerging ma...