We have sketched the MXEF index back to April of 2010 to encompass a period of peaking EM valuations in the fall of 2010, and the ensuing periods of stress from peaking PMIs, dramatically slowing China, Fed stress, local policy failures, and capital flows out.
As the US threatens to escalate sanctions, the question remains how effective sanctions can be, and what would be the scale of them.
The attached chart of the Russell 2000 shows a breakdown that many have been calling for but has yet to really unfold.
US Cap Utilization is at multi-year highs as US data points improve with the spring weather.
As per Merrill Lynch, you would be up 48% on the spread.
Nasdaq BioTech Index led to the move lower for all stocks.
S&P is having its fourth worst day of the year (-1.6%), but Emerging Markets only down 40bps.