More often than not, if you tell me that an asset is roughly 20% above its long-term trendline, I will tell you that the investment is overbought. I might even explain that a pullback to the 200-day moving average is a necessary prerequisite before buying the asset or, at the very least, an 8%-10% sell-off [...] [...more]
China’s manufacturing sector is contracting, Brazil’s consumers are retrenching and India’s economy is growing at the slowest pace in a decade. Is it any wonder that commentators as well as investors are abandoning the concept of “BRIC” (Brazil, Russia, India, China) funds?
Others muse that the real opportunities can be found in different emerging markets or [...] [...more]
The emerging market growth story is beautiful in its simplicity. Younger people with¬†increasing amounts of income in industrializing countries should drive demand for more¬†products, services, infrastructure and housing.
Of course, the emergers are not without their concerns. They face more vexing inflation than developed economies. They’re more dependent¬†on the natural resources they can or cannot export. [...] [...more]
Nearly every visitor to the CNBC microphone¬†is making the same proclamation; that is, emerging markets can’t handle commodity price inflation as well as developed markets.
The problem with this analysis is the conclusion that each¬†is providing. Specifically,¬†stock assets from the¬†U.S, Japan and the Euro-zone will outperform the industrializing world.
This has been true for the previous 6 [...] [...more]
The S&P 500 stayed above its 200-day¬†exponential moving average for a second consecutive day. Chart enthusiasts (a.k.a., technical analysts) find this trend rather bullish for the popular large-cap indicator.
Benchmarks for small- and mid-cap U.S. equities have also advanced the bullish cause. Both the iShares Russell 2000 Fund (IWM) and the SPDR MidCap 400 Fund (MDY) [...] [...more]