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 Call July 28 – On the call today we get into the global backdrop for the week which contains a lot of macro data and lot of Fed activity along with a lot of geo-politics.
Concerns over the viability of Portugal’s largest banks, Banco Banco Espirito Santo, Popolare and Unicredit have sent market participants once again to the safety of gold. As result gold future hit 3 months highs in today’s session.
As we move into the final stretch of the first week of June, market participants find U.S. economic reports at best mixed. ADP Jobs numbers fell short of expectations (179k vs, 210k) and analysts are now wondering when we are going to see stronger recovery numbers.
We may look back at today’s price action in India and say this was the day that initiated the pullback we have been calling far.