I have often talked about how Emerging Markets correlate very highly with small cap stocks in the U.S. for a couple reasons:
Emerging Money Daily Audio Preview Call July 22 – On the call today we dig into the outperformance of Emerging Markets versus Developed Markets, another 70 basis points today and we believe the spread continues to trend higher especially with fund allocations being very supportive.
Emerging Money Audio Call – on the site this morning we are talking about the rally in emerging markets we also will dig into more details on the emerging money audio call on how to position for the second half of the year.
Then why even after a 20% move lower today is it still trading like its offering Emerging Markets style growth?
Emerging Market equities are outperforming the SPX today by 1.2% and have now rallied 7.6% in 2 weeks even as the SPX hits all-time highs.