In 2010 and 2011, the US Federal Reserve was implementing quantitative easing in response to weak growth and a slow recovery in labour markets. Meanwhile, emerging markets were enjoying a strong rebound from the global financial crisis. The result was investment in search of higher yields flowing out of advanced economies into emerging markets, including South Africa.
Fast-forward a few years and the situation is rather different. US unemployment has fallen dramatically and is now close to its likely natural rate. The Federal Reserve has stopped quantitative easing and is trying to decide how much more to raise interest rates. Meanwhile, emerging markets have suffered a severe slowdown.