A lot of hot money has entered emerging Europe since May 2004, when 10 new accedents entered the EU, but experts have questioned whether inflows have been well thought-out.
Martin Taylor, manager of the Thames River Nevsky fund, says the new money is "just ignorant stuff coming from Western institutions. And when the market goes down they will all pull out."
"Because of this inflow," he adds, "a lot of stocks are ludicrously overvalued, so we are finding some strong short positions."
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