Emerging markets equities saw net outflows during the first half of 2011, as investors worried about restrictive monetary policies leading to lower economic growth, while risk aversion grew because of the political upheaval across the Arab world.
US Treasuries were a beneficiary of this risk aversion, despite the challenges the US government faces in managing its debt burden. And global investors also re-allocated funds to German equities, as the German DAX stock index surged to register emerging markets-type returns.
