Investors flee EM stocks, build US positions

Investors dumped emerging-market equities this month as US stocks continue to find favour, amid slowing economic growth in China and an expected rise in US interest rates. A net 13% of allocators have moved sharply underweight EM stocks, from a net 1% being overweight in December, according to the Bank of America-Merrill Lynch monthly fund manager survey*. And a net 17% say emerging markets is the area they most want to underweight in the coming year. Meanwhile, a net 24% of man…