Cash Inflow In Emerging Markets Can Be Positive For Bitcoin

 Jamie Anderson, a managing principal at Tierra Funds, seems convinced  there is data showing these countries are recovering. At the same time,  these inflows are only a drop of water on the boiling plate at this  stage.  

 For those people who were dreaming of a cashless future, that  situation will not become a reality anytime soon. Emerging markets are  suddenly receiving bucketloads of cash, to buy stocks and bonds.  Interestingly enough, both emerging markets and developing countries are  reaping the benefits of this change.  It has to be said, a record amount of cash funds have been flowing to emerging and developing markets  over the past week. Emerging markets aw US$4.9bn entering the bonds  market, whereas developing countries saw US$4.7bn worth of stocks being  purchased. This is quite a change from the cash outflows all of these countries had to deal with for several years. 

Emerging Markets And Bitcoin Pick Up Steam

According to some investors, these  markets are at a turning point. It is still a bit early to say whether  or not this is true, as it depends on many different factors. Unless commodity prices and export pick up in these countries, it is doubtful any significant changes will be happening soon.  Jamie Anderson, a managing principal at Tierra Funds,  seems convinced there is data showing these countries are recovering.  At the same time, these inflows are only a drop of water on the boiling  plate at this stage. Investors pulled out a lot more cash out of these  regions over the past year than they are putting in right now. Interestingly enough, both US and European stocks are  seeing an outflow of funds once again. Both markets combine for US$67bn  in outflows for the year 2016 to date, and there are still a few months  left on the calendar year. The low-interest rates maintained by the Fed  are good news for these emerging markets, as it makes paying back debt  less expensive. But that is not all, as it is rather  cheap to get involved in emerging markets right now. With stocks trading  at prices valued at 12 times their future earnings, it is not hard to  see where this renewed interest is coming from. The same could be said  for Bitcoin, though, which is still trading at a much lower price than what its value could be right now.  This creates an attractive scenario  for investors who are looking to keep a finger in the pie across the  world. Emerging markets, cryptocurrency, and precious metals seem to be  the three go-to investment opportunities right now. Exciting times are  ahead for alternative investment options; that much is certain.  

Source: newsbtc.com