Today US 10yr yields are breaking below the 200mda for first time since last April. Whats this telling us?
Suddenly its time for markets to get ready to digest another important employment number as the debate rages on whether the stock market has gotten ahead of the recovery.
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.
That is the statement I heard from a wise man said to me today. So simple, yet the torrent of sentimental rain upon emerging markets for the last few weeks has seemed as if casual observers are throwing in the towel.
According to very detailed data compiled by BAML and EFPR, last week Emerging Market fund outflows were $6.4Bn, which is the largest such move since August of 2001.
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.
Emerging Markets are limping to new lows versus S&P as currencies get smoked. At what level can you own EM?
DXY index is off -85bps in afternoon trading, but that doesn’t mean the USD strength devastation is not being felt across the world.