Analysis of capital flows is a fundamental part of being an investor in EM. What do the flows mean, what are the trends, where are they leading??? The data we have endured in the last 6-8 weeks in EM is nothing short of remarkably bad.
I was asked by Fidelity to give a presentation to their clients ahead of the Trader Expo in NYC. In the presentation I gave my views on the EM selloff and a number of key sub-topics within the asset class. Here I will present my slides on China.
Look at the EEM ETF tracking the MSCI EM Index and we can see that the panic of Monday ushered in a bounce that has taken the EEM from a kiss of $37.00 back to $38.50 (+3.7%).
China Internet Index (EMCHI) off another -4% today with the escalation of risk in markets and still no resolution on the accounting issues that are front and center.
Yesterday, on CNBC’s Street Signs, the focus was on the “MINT” economies: Mexico, Indonesia, Nigeria, and Turkey, as they are coined, or “MINTs”.
LONG the US Dollar was a trade that for much of 2013 was a consensus view, but to many this trade failed despite the backdrop of a stronger US economy and the Fed in the wings to taper.
At Emerging Money we have been working for the last six months on an upgrade to the site that will include a series of new analytics, metrics, indices and subscription products for our audience.
Despite a huge run in airlines stocks on a combination of structural efficiency advances, lower fuel cost tailwinds, and increased traffic there are reasons to believe the trade can fly higher.