Where did the smart money go in December?

At the end of 2013, there was relatively little focus on how the end of quantitative easing (QE) might affect the developed world but a lot of concern about its impact on emerging markets. Investors worried that constraining global liquidity may negatively impact developing countries and continued to desert emerging market funds in their droves. The notable exception was China, where investors started to believe the economy may be turning a corner. Data from EPFR Global showed investors returned to dedicated China equity funds during the final days of the year. These funds took more than...