Selloff at emerging markets can get worse, and investors shall consider investing into US stocks, reports Bloomberg with reference to Citigroup.

Strategies of the company advise to pay more attention to American equities and reduce holdings in fixed income instruments of emerging markets taking into account fall of currencies from Argentinean peso to Turkish lira that investors observe this month.

Outflow of investments from emerging markets now is quite stable. However further developments as well as observation of currency markets can make investors to increase outflows.

Although analytics forecast dollar weakening in medium term due to rising US debt and deficit, green currency growth is not over yet.

Such factors as higher US yield, oil prices growth, disappointing data from Europe, lower expectations of ECB rate increase and political uncertainty in Italy reduced euro/dollar ratio. Unless these factors stabilize or reverse, dollar weakening shall not be expected.