The “dogs of the Dow” approach is well known in U.S. large-cap investing, but global traders can find endless ideas picking through the wreckage of the worst-performing emerging market ETFs as well. At the moment, the Global X China Materials fund (CHIM, quote) qualifies as the dirtiest dog at the table.
Global markets continued to slide to the downside on, you guessed it, concerns over the economic future of Europe. As well, in-line earnings from MercadoLibre saw one of the darlings of emerging markets drop precipitously.
Global markets continued to fall on Tuesday. Risk-off was the name of the game as concerns over Greece after this weekend’s elections continued to rock equities worldwide.
American markets tumbled on the back of disappointing jobs data, a gloomy growth outlook, and nervousness going into European elections this weekend.
European concerns reignited over the weekend as France’s Socialist Party candidate won the first round elections and the Euroskeptic National Front Party fared particularly well; elsewhere, the Dutch government dissolved as the result of budgetary squabbles. Neither development bodes well for European markets going forward.
With a temporary reprieve from European calamity as markets across the pond were up, the internet was afforded the opportunity to report on events from elsewhere in the investing universe: namely, the BRICS. Stories on Chinese state propaganda IPOs, Indian state banks, and Russian search engines were the highlights of today’s web offerings.
Although positive earnings from technology firms dominated headlines in the United States, stories from the rest of the world were less positive. Concerns over the fiscal health of Europe’s periphery fester as the markets worried about Spanish debt and the efficacy of Italy’s austerity measures.
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.
Some observers are welcoming China’s shrinking trade surplus as a sign the country is finally rebalancing its economy to move away from export dependence and consume more imports. But China’s imbalances have actually worsened.