We’re not huge fans of “risk on” / “risk off” explanations of global market movements around here. Not only is it simplistic to reduce all the factors that play into the rise and fall of asset classes to a simple binary proposition, but it looks like even its limited viability is evaporating fast.
A dirty secret of many ‘global’ funds is that they’re really the MSCI EAFE with some lip service paid to China, India and other markets that are generating the lion’s share of the world’s economic growth. Can you build a better portfolio on your own?
With most of the euro zone on holiday yesterday, traders around the world turned to the U.S. session for directional cues. U.S. stocks rallied on manufacturing data Tuesday morning and shrugged off the Chicago PMI and China’s disappointing PMI, only to finish well off the highs.
From a technical point of view, emerging markets have gotten a nice lift over the last week. But not all slices of the globe have bounced back equally.
Today’s global selling has been brutal on all the international ETFs we track, but with the losses weighing especially heavily on funds that focus on the euro zone, some traders may wonder whether there’s a value opportunity here.
The strategic question of emerging versus developed markets is always central to any global investor. As the euro zone’s woes have demonstrated, this has become a lot more complex than a simple “risk on” versus “risk off” binary call.
We are big fans of the Turkish market around here, but it says something when the world’s second-biggest economy, growing at a rate of nearly 9% a year, is trading at the same valuation.
We love Jim O’Neill of Goldman Sachs around here. Inventing the “BRIC” as a market category is only the most famous of his achievements, and now he is back to beat the drum on markets closer to home.
Today’s Trading the Globe focused on investing in a world where the risk of systemic implosion has been greatly reduced and last year’s losers are outperforming the pack.