With the credit cycle turning and earnings cycle in full form (with a huge boost from the Euro), we are seeing European stocks hits 7yr highs. Somehow this isn’t terrible exciting with the SPX and NASDAQ also just off highs, and the NASDAQ 5000 mania is all the US investors hear about. Well, Europe is a better story and one we have written and talked about for 2 months.
Argentina has been the expected roller coaster for investors over the last 30 months (see chart of the Merval) as the political pendulum has swung back and forth on change and willingness to negotiate in good faith with western creditors.
Emerging Money Daily Audio Call – February 12 – On the call today we talk about emerging markets underperformance month to date routed entirely in the current seen those which are now getting near crisis points.
Emerging Money Audio Call January 28 – On the call today we find a quiet bull market in emerging slowly developing?
Emerging Money Daily Audio Call – Wednesday, December 10 – On the call today we get into emerging market levels where we ticked lower another 1% today well through the October lows and we are dancing
Emerging Money Daily Audio Call October 15 – Your ticket around the world on the call today we are seeing U.S. markets put more pressure on Emerging Markets.
Over the last three months and from the lows set back in early February, the Emerging Money Country Allocator Index (EMCAI) has outperformed the benchmark MSCI.
We have made changes to our Emerging Money Global Index to reflect changes in underlying prices of the components based upon our view of the remaining 2Q investment and allocation dynamics for these multinational companies who count EM as key to their revenue and growth vision.
After a blistering two month period where the Ibovespa rallied 24% in USD terms (EWZ, quote) and the Istanbul XU 100 Bourse (TUR, quote) rallied 3-% we have downgraded these top overweights 20% and raised Russia (RSX, quote, 9% from 6.5%) and Korea (EWY, quote,14% from 12.3%) on underperformance.
After a month in which Chinese internet and technology stocks were battered along with the global internet rout, we have made adjustments in the Emerging Money Chinese Internet Index which we feel reflect increased upside in a handful on index components and a reweighting which then adjusts proportionately.