Wait for Dollar Drop Before Buying Emerging Market Stocks, Citi Says

Investors keen to take on board more risk and buy emerging market equities should wait for changes in two key signals -- a jump in Chinese money supply growth and a break lower in the dollar.

That’s the view of Citigroup Inc. strategists including Jeremy Hale, who are keeping a more cautious stance on developing-nation stocks until signs of fundamental growth improve, as positive sentiment on trade has failed to kick-start a period of outperformance for the asset class.