The number of investors pulling out of commodities has increased, with "aggressive" underweights to the sector hitting a record high, according to the Bank of American Merrill Lynch.
Withdrawal of liquidity would be challenging for EMs with high budget deficit or current account deficit.
In an interview to CNBC-TV18, Baker said that given the nature of crisis that world markets are facing, most people want to see this year out rather than think if there is another trade to be had. "We are seeing that in terms of fall in volumes," he said.
Gary Baker, head of European equity strategy at BofA Merrill Lynch Global Research feels 10-15% downside might be possible in the short-term, but the valuations still look supportive.
In an interview to CNBC-TV18, Bofa Merrill Lynch Global Research's head of European equities strategy Gary Baker gave a global market outlook and how he sees India performing from hereon.