Emerging Markets vs. domestic markets can the chart recover?
Emerging Markets vs. domestic markets could be game on if the chart can recover in a big way if we respond to the Federal Reserve and European Central Bank meetings this week the way emerging markets did in the epic first week of Sept 2012.
This was the week when both central banks ratcheted up the game of quantitative easing infinity. This week the European Central Bank said all they could say on accommodative policy.
Look at yields in European Union sovereigns hitting record lows. Emerging Markets outperformed domestic markets from that point into January 2 by 13%.
All the ingredients are there again... and stocks especially materials more oversold. Investors are picking over underperformers and rotating right now.