Saudi Arabian Emerging-Market Status Comes With Sobering History - Bloomberg:
"As Saudi Arabia celebrates its first ever emerging-market classification by a major index compiler, history suggests the market may be headed for a retreat. The Saudi stock benchmark advanced to the highest since 2015 Wednesday before FTSE Russell said it’s classifying the country as a secondary emerging market, with actual inclusion set to happen in stages starting a year from now. MSCI Inc., which has more investors tracking its emerging-market indexes, may make a similar decision in June. But two of the kingdom’s neighbors, Qatar and the United Arab Emirates, saw stock rallies fade after MSCI upgrades in May 2014, suggesting that Saudi Arabia could also see a slowdown of the flows that have propelled stocks to their three-year highs."
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