Just about everything that can go wrong for emerging markets has gone wrong over the past several years. Currency crisis, debt crisis, energy crisis...you name it. It makes me think about how much more blood can be squeezed out of these markets. What are your thoughts? Is anyone starting to see value here or is there a lot more pain yet to come?
Emerging Markets - Opportunity or Money Pit?
- Thread starter Apbideas
- Start date
EEM prices have been firmer, stronger than US, Japan and Europe for 2016.
Negative focus or attention seems to have shifted somewhat to G3 currencies and equities recently.
It is surprising that EEM can outperform G3 for weeks to months but it does not last.
Maybe we are just in one of those pullback/consolidation phases.
Negative focus or attention seems to have shifted somewhat to G3 currencies and equities recently.
It is surprising that EEM can outperform G3 for weeks to months but it does not last.
Maybe we are just in one of those pullback/consolidation phases.
i think when people panic sell in a forced liquidation they tend to sell the winners... which is why the FANG got sold off last and sold off big. Once the fear is removed, the winners will lead again on the way back up.
I just moved a little chunk into emerging markets this week in my retirement account. I think there is some potential in the long term
There are definitely a lot of macro themes working against EM right now but I think that it basically boils down to a general lack of interest in risk premia at the moment. I think of EM as the small caps of international investing and similarly there is just a general "risk-off" attitude when you look at the recent performance of small cap vs large cap equity. The fact that you see the term "negative interest rates" in mainstream news says so much about the sentiment underlying this environment.
