Watch for a big bounce in the emerging markets vs. domestic markets indexes today as suddenly the view is China is making major structural changes towards a market economy.
Emerging market stocks rise the most in two months amid China’s pledged to increase private investment in its new economic policy changes.
As SPX hits all-time highs, emerging market equities kiss their 5yr lows.
Emerging markets equities (EEM, quote) quickly have traded all the way down to near support levels on the spread to the SPDR S&P 500 ETF (SPY, quote) that goes back 5 years.
As the U.S. Congress approaches a deal today markets have been all of the buzz as early as the pre-markets.
Big outflow last week of $-2.2 billion after a week of strong flows $1.9 billion the week before. What I am seeing today and over last few days in ETF land is that investors are allocating to emerging markets away from domestic markets.
Emerging markets one of the big beneficiaries of the Fed non-taper…