Best of Thursday’s web
Global markets experienced another down day as woes over the euro zone crisis multiply. Today, we’ll look into a possible downgrade of Spanish banks, BRIC bear markets, and Colombian political violence.
ETFs
Moody’s downgrading 21 Spanish banks, EUFN falls near 52-week low
The other shoe has dropped on the Spanish banking sector and the heel-print has “Moody’s” on it.
Global small-cap funds are bearing the pain better
Normally considered the first to collapse in an economic slowdown, smaller and more economically sensitive emerging market ETFs are actually resisting the worst of the global market’s recent losses. This is not just a liquidity issue.
Why Moody’s reaffirmed its negative outlook on South Africa
Citing ineffectual and capricious government policy, Moody’s has reaffirmed its negative outlook on South Africa’s credit rating, as its economy (EZA, quote) is now experiencing slower growth in addition to stubbornly high unemployment.
Russian economy holding its own despite oil’s dive
Global markets are getting caned, taking both oil prices and petroleum-dependent Russian stock prices down with them. This seems to be a simple kneejerk reaction; the Russian economy itself seems to be holding up more than well.
Know what you own inside your ETF
Just because you choose a position or invest in ETFs does not mean you can tuck them away in the back of your portfolio and forget about them.
Trading today’s bounces in copper
Overnight trading in copper has now been confirmed by the U.S. session as another leg down. Copper has broken below the 2012 sideways trading channel to fuel even more fear that the global economy is falling back into recession.
Latin American bear funds are now in the driver’s seat
Look at the chart for just about any of your favorite emerging market stock, currency or commodity ETF and you’ll see things have gotten nasty all over the planet. This is when the inverse, short, or “bear” funds thrive.
Asian emerging markets rule the world this week
Asia remains the relative standout against emerging markets that have largely given back all the ground captured this year as the euro crisis flares back up again. Expect further monetary easing as Europe derails export-heavy emerging markets.