According to the chief investment officer at T Rowe Price, US investors who keep on shunning US equity markets in favor of bond investments or emerging market stocks might be in for disappointment.
With interest rate rises looming, denting the value of fixed income investments like corporate bonds, and with emerging market stocks having obtained so quickly in the past year, investors should fight that tendency to follow the herd.
The US mutual fund industry represents hundreds of billions of dollars of investments made by ordinary investors and small institutions. The lows of money can have an effect on companies and their capital raising plans.