EM (EEM, quote) has had multiple fits and starts in the last 9 months and even last three years where it looked like long time underperformance was coming to end vs the SPX.

brexit-shutterstock2This morning's rally on fresh Brexit polling may give the asset class the next leg of ammunition it needs now that the Fed is stepping out of the way. The great thing about this trading relationship is that it has merit for both short term tactical traders and long term investors alike.

The long term outlook favors owning this spread for the next 18 months as US earnings continue to sputter and policy will be a major question mark. A bottoming (our view) in commodities and topping tin the USD (UUP, quote) gives the investors both the catalysts and the rationale for a longer term move.

See how the Emerging Money Team is playing Emerging Markets today.

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