Concern over RBS’ sell-everything advice as it may affect emerging markets

THE Royal Bank of Scotland’s (RBS) advice to “sell everything except high quality bonds” may apply mainly to developed markets but there is concern that there could be spillover to emerging markets which are still relatively cheaper.

“I believe they are referring to the US equity and credit markets. The US market looks a bit pricey now and a 10% correction on equities and the US dollar is possible over the next one to two years,’’ said Areca Capital Bhd chief executive officer Danny Wong.