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Stampede out of emerging markets may bring golden buying opportunity

The money flowing out of emerging market investments has become something of a spectator sport this week. We see different numbers from different sources, but the overall takeaway is the same: Investors are fleeing in big numbers.

Bank of America calls its report on the subject “The First Signs of Panic” and refers to outflows from exchange traded funds as a “stampede.” The combined outflows for emerging market equity and debt ETFs totals more than $9-billion (U.S.). That rivals outflows seen during last summer’s “taper tantrum,” the U.S. debt ceiling crisis of 2011 and even the Lehman crisis of 2008.