As we see the US emerge from the winter hibernation (Retail Sales, Industrial Production, Jobless Claims), we are also seeing signs of Emerging Markets recovery on Macro.
The recent Emerging Market rally is built off a combination of fundamental and technical factors.
We said 52K on the Ibovespa was a place to take profits.
I am starting to get a lot of questions from investors regarding the sustainability of this rally in Emerging Markets and what can be the drivers for the next leg(s) higher.
Emerging Market equities are outperforming the SPX today by 1.2% and have now rallied 7.6% in 2 weeks even as the SPX hits all-time highs.