The recent Emerging Market rally is built off a combination of fundamental and technical factors.
As per Merrill Lynch, you would be up 48% on the spread.
Emerging Market Funds, both dedicated and ETFs, have now strung together two consecutive weeks of inflows for the first time in 6 months.
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.
Last night Lipper announced fund flow data and the verdict is in. Investors are reaching for risk and after March the data shows dramatic improvement in market tone after pulling back in the first two months of the year. The data also indicates April’s fund flow has started out strong.
The most money is made in Emerging Markets when things go from “terrible” to just “bad.”
We introduce our Emerging Money Brazil Index (EMBRZ) which is an index of 20 stocks that give investors more balanced exposure to Brazil than they would get from an investment in the EWZ or other MSCI linked indices….