consensus is very bearish

record pessimism on global profits (net 68% of investors predict deterioration

over the next year). and record pessimism on chinese growth (see chart 1). lots

of bad news now appears priced-in to em equities. pain-trade is up.

risk appetite at all-time low

record level of risk aversion: ml's risk index falls to 41, a buy signal for em

equities. and plenty of cash on the sidelines: highest level of cash (4.7%) since

sep '04; net 41% ow cash, highest since oct '01.
global equity rotation

big rotation to us equities from eurozone. global overweight in em equities drops.

sector preferences are defensive

record overweight in global telcos (also the fave sector for em investors).

investors ow pharma too. contrarian dm sectors are banks and consumer

discretionary; contrarian em sectors are materials and tech.

em country preferences

big rise in em investor preference for russia: big drop in preference for south

africa and korea.