Global turbulence triggers flight from EM equities

Global market turbulence has triggered the biggest outflows from emerging market equities in more than a year.

Investors removed $9bn from stocks and shares across Africa, Latin America, eastern Europe and Asia in October, according to figures from the Washington-based Institute of International Finance, which tracks all cross-border investment into developing countries by non-residents.

But here are returns for October

GMF emerging asia +2.1% (blue)

VWO overall emerging markets +1.4%(green)

SPY S+P 500 +1.1% (gold)

One month growth of $100,000 total return

This comparison is interesting flows into emerging markets (top) and price movements for VWO (bottom) seems to be evidence of quite a bit of performance chasing buying high and selling low