Reuters offers insightful analysis on volatility, emerging markets

Reuters provided readers with important insight over the past week into how asset managers were again seeking value despite heightened uncertainty surrounding everything from euro zone sovereign debt to the BP oil spill to U.S. financial regulation. On June 11, in an analysis called “Seeing through the fog of volatility”, Reuters showed how many funds still viewed Wall Street volatility gauges in excess of 30% as excessive and signalling a buying opportunity. Again on June 14, Reuters analysis “Cheap emerging stocks poised for recovery” showed value investors homing in on emerging markets in particular despite an expected drag from new IPOs. The stories captured the zeitgeist. Since June 11, global equities have gained almost 10 percent, emerging market equities are up more than 7 percent and Wall Street volatility has fallen by almost 10 percentage points – or almost a third.