Emerging Markets Beware: A Recent History of BofAML's Most-Crowded Trades
- Emerging-market assets are most-crowded trade for first time
- Recent holders of top spot subsequently suffered declines
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The most popular trade in global markets is now long emerging markets –- contrarians should prick up their ears.
A quick glance at the recent history of the “most-crowded” trades section in Bank of America Merrill Lynch’s survey of global fund managers shows an asset’s popularity can often peak just before a fall in price. Here’s a look at the last four instances of such trades in reverse chronological order: