Emerging Market Risk Appetite Rebounds, But Will It Last?

A survey by Societe Generale SA (EPA:GLE) (OTCMKTS:SCGLY) of investors in emerging market shows that risk sentiment in the short term (two weeks) has now bounced back to neutral from a  sharply  bearish view a  month  earlier, but the medium-term (three-month) bias has considerably worsened.

Emerging Market Investors Still Negative on Risk

Emerging market investors’ risk positions remained broadly stable from a month earlier, still showing outright short/underweight risk taking. The  overall positioning index indeed remained broadly stable at  -0.15, compared with  -0.17 a month earlier. There was a marked difference between hedge fund investors and real money investors in terms of the  positioning index, with hedge-fund positioning standing at  -0.36, well below the +0.08 registered...