Business Standard

Cash is king for whipsawed emerging-market investors, says HSBC

Developing-nation equities are headed for their worst month since the March 2020 rout

emerging markets

The prospect of policy tightening by the Fed was seen as a bigger concern than inflation and the global pandemic

Emerging-market investors whipsawed by volatility are sitting on a pile of cash and are waiting for markets to stabilise before getting back into higher-yielding assets, according to an HSBC Holdings survey. About 45 per cent of investors that the London-based bank polled have more than 5 per cent of their portfolios in cash and almost two- thirds of them don’t expect to deploy it over the next three months.

Their biggest concern: the prospect that markets will overreact to any sign that the Federal Reserve is reducing its support for the US economy by tightening policy. Investors have also become less

Don't miss the most important news and views of the day. Get them on our Telegram channel

First Published: Jul 31 2021 | 12:22 AM IST

Explore News

To read the full story, subscribe to BS Premium now, at just Rs 249/ month.

Key stories on are available only to BS Premium subscribers.

Register to