“There are also other factors that affect inflows and outflows, those include changes in risk preference by investors, changes in growth expectations, different perceptions of institutional strength within emerging markets across different countries,” Bernanke added.
The relative performance of EEM to SPY is illustrated in the weekly chart below below:
For more information on developing economies, visit our emerging markets category.
Max Chen contributed to this article.
Full disclosure: Tom Lydon’s clients own EEM and SPY.