Bank of America: Emerging markets may see a significant inflow of funds early next year.

[Bank of America: Emerging Markets May See Large Inflows Early Next Year] Bank of America stated that as more signs indicate the resilience of emerging economies, emerging markets may welcome larger inflows of funds early next year, which will drive further capital shifts from U.S. assets. "People will become more optimistic early next year as they confirm that the impact of trade tensions on the economy will be limited," said David Hauner, head of Global Emerging Markets Fixed Income Strategy at Bank of America. "Even small-scale diversified investment flows from the U.S. could have very significant effects." Hauner has maintained a bullish stance on emerging markets since the first quarter. He believes that this asset class will benefit from a weaker dollar, the continued room for further rate cuts by Central Banks worldwide, and the historically low allocation of global funds to emerging markets. Hauner noted that Brazil, Mexico, Colombia, Turkey, and Poland will be the major beneficiaries of foreign capital inflows. ( Jin10 )