EM inflows ‘could be seasonal’, warns Koesterich

BlackRock’s Russ Koesterich has warned the strength of inflows into emerging markets at the start of the year could be down to seasonal buying.

The company’s chief investment strategist said stocks often benefited at the start of a new year.

“While the so-called ‘January effect’ may not be as significant a trend as some would believe, there is a modest historical tendency for stocks to advance in the first month of the year,” he said.

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“This year, we have been seeing inflows into equities, with much of the money moving into higher-risk areas of the markets and into emerging markets equities in particular.”