NextBillion - An Initiative of the William Davidson Institute at the University of Michigan

Investors in emerging markets are shifting to stocks from bonds as they prepare for the world after monetary tightening. There are early signs of a rotation under way, with equity benchmarks beating local-currency bonds since the beginning of July. And traders are already starting to chase the rally, with Bank of America Corp. reporting that emerging-market equities have absorbed $4.1 billion in the week to Aug. 2, adding to inflows in the previous three weeks.

Photo courtesy of Lorenzo.