Chart of the Day? Commodities at 1 year high without China strength and with concerns about the weather stifling demand
Folks, with today’s underperformance of EM vs DM (the world) we would like to highlight the extreme nature of not only the techincals, but also the techincals of the fundamentals.
EM vs DM: Emerging Markets yesterday kissed their lows again the SPX going back through the crisis, even including a spike down when EM “bottomed” first in the Fall of 2008.
What was recently their secret weapon to outperforming the S&P on EPS is now a headwind but is it a hurricane?
The Emerging Money EM FX Basket (EMFXB) is a GDP weighted index comprised of the eight most volatile primary currencies in EM.
EM in Perspective: See attached graph and you can see that the MSCI EM (benchmark for EM equity) has annualized at 7.44% a year in the last decade.