BTC iShares MSCI Emerging Markets ETF
The Longevity Phenomenon: Impact on the World
The longevity phenomenon has given rise to a unique problem. The world’s population is aging rapidly, which could have a negative impact on productivity and growth rates.
Overview: The thin line between frontier and emerging markets
Going to frontier markets offers more of an opportunity to discover the most overlooked companies.
Why Do Central Bankers Continue to Surprise Bill Gross?
In his recent webcast by Janus Capital, Bill Gross expressed his surprise at the extent to which central bankers of the developed world (EFA) (VEA) have distorted the financial system.
Emerging Market Equities See Valuations Rise on Fundamentals
Valuations rose by 3.10% in the week ended September 11, 2015. The rise was mainly due to buying in India’s equities on higher industrial production and low inflation.
EM Fundamentals Look Healthy Despite Recent Volatility
The title of Shakespeare’s sixteenth century play “Much ado about nothing” is now a common phrase that translates to making a big fuss out of something insubstantial. How might this relate to current market noise on emerging markets? Emerging markets (or EM) continue to face volatility in today’s investment environment, but these swings are perennial […]
Can New BlackBerry Smartphone Offerings Increase Unit Sales?
BlackBerry now plans to launch its next version of the Passport smartphone, Passport Oslo, by the end of this year. The smartphone will have high-end specifications.
What Will Drive Services Revenue for Apple?
Emerging markets such as China and international markets such as Japan have contributed significantly to Apple’s Services segment over the years.
Europe and China ready to jump-start their economies
Unconventional stimulus measures from central banks usually end up injecting liquidity in global financial markets. They’re especially relevant to emerging market economies.
Must-know: Which safe havens are truly safe?
Although not considered safe haven assets, in the current context of high geopolitical risk and consequently volatility, investors could consider investing in sectors like energy and large cap companies.
Unchanged Interest Rate Impacts US Equities Valuations
Valuations rose 0.03% in the week ended September 18, 2015. They were revised mainly due to higher retail sales, more building permits, lower unemployment rate, and unchanged interest rates.
How Emerging Market Funds Kept Their Momentum
In the current market scenario, the global markets (ACWI) (VTI) (VEU) are mainly driven by the monetary stimulus provided by the central banks.
Minimum-Volatility Funds Provide Cushion During Downturns
Minimum-volatility funds provide cushion during high volatility. These funds invest in low beta stocks and sectors that weather periods of volatility.
Is Alphabet’s Africa Push Paying Off?
In 3Q17, Alphabet reported EMEA revenues of $9.1 billion, implying a growth of 23% YoY (year-over-year).
Emerging Market Equities Saw Outflow in Week Ending August 14
China’s devaluation of its currency, combined with a steep decline in Russia’s GDP, led investors to withdraw funds from these emerging markets.
What Are the Rate Hike Implications for Emerging Markets?
An interest rate hike in the United States (IVV) is likely to pose a huge challenge to emerging markets.
Why emerging markets offer value to your portfolio
Truth: Emerging markets offer value. Given that they’re generally growing faster than their developed world counterparts, emerging markets still look cheap by most metrics.
How an Aging Population Could Affect Your Portfolio
One of the big-picture shifts currently taking place is aging populations, especially in developed nations. Populations are rapidly aging in most developed countries.
Must-know: Why the Fed drove up emerging market asset prices
Many economists, like the Nobel Prize–winning Paul Krugman, believe that the Fed acted as a “white knight” in 2008, saving the global economy in the dire aftermath of the financial crisis.
Why India Looks Like an Attractive Emerging Market
Timothy Moe, chief equity strategist for the Asia-Pacific region at Goldman Sachs (GS), believes that the long-term prospects for India are the best among the emerging markets.
Unemployment in Mexico holds steady, finally some good news
May unemployment figures were marginally stable compared to April Unemployment is a key indicator of economic health. It’s a lagging indicator, and that means it’s better at confirming trends, especially downward trends, since unemployment rises faster than it falls. Unemployment holds steady, in line with PMI employment indicator The June PMI showed a continued slowdown […]
Chinese Yuan Will Benefit from Being a Reserve Currency
The monetary authority in China (FXI) (YINN) worked to get greater international recognition for the yuan. There are benefits to being a reserve currency.
Investment Opportunities in This Environment
VanEck CEO, Jan Van Eck, joins me today to discuss his macroeconomic outlook and also to talk about investment opportunities that he finds most interesting in the current environment.
Stellar returns: Why you should consider frontier markets
While a traditional emerging market benchmark is up 1.5% year-to-date, frontier, or “pre-emerging” markets, have been performing well.
Google Wants to Counter the Threat from Mobile Apps
Google will need to continue to innovate in the mobile advertising market so it can compete with mobile apps. The mobile ad market has huge growth potential.
Christine Lagarde of the IMF sees a 3-speed economy (Part 1)
Christine Lagarde, the managing director for the International Monetary Fund, sees a three-speed global economy In her speech at Brookings Institution in early June, Lagarde mentioned that the global economy has shifted this year towards a three-speed economy, versus the two-speed economy coined by PriceWaterhouseCoopers half a year ago. You can broadly categorize the three […]
Why Commodity Trading Advisors Fare Well When Nothing Else Works
CTAs (commodity trading advisors) offer diversification benefits (commodity exposure when the equity markets are down), along with liquidity.
High-Dividend Emerging Market Funds Offer A Cushion
High-dividend emerging market funds offer a cushion when you face market volatility.
Why is gold so important in India?
India is the largest gold importer in the world, yet the government continues adding limitations to importing gold into the country Many factors—including low credit and the continued depreciation of the Indian Rupee—have led the government to instill several gold importing restrictions since the beginning of the year. It seems now that every few weeks, the […]
Why Brazilian consumers are becoming pessimistic
Consumer expectations surveys are helpful for analysts Consumer expectations drive the trade-off consumers make between spending and saving. Both saving and spending are important for economic growth. More spending means there’s more demand for products, so businesses increase revenues and profits. More saving, though, means banks have more capital to lend out to businesses to […]
What’s behind Malaysia’s Large Trade Surplus in June 2017?
Malaysia’s trade surplus jumped to 9.9 billion Malaysian ringgit (MYR) (about $2.3 billion as of August 11, 2017) in June 2017—an 80% rise YoY.
Why Emerging Market Debt Still Looks Attractive
Investors have tended to pull money from U.S. equity funds in the month before election day in the past four presidential elections, EPFR Global data show.
What Chile’s Mining Strike Means for a Highly Privatized Economy
Chile had been known as the best-managed economy in Latin America—until recently.
Economic Indicators Investors Should Watch This Week
If major Eurozone economic indicators improve in the coming months, we could expect those economies to regain some strength.
Emerging Market Dividend Payers Currently Offer Value
Emerging market dividend payers are offering value, given their high volatility.
Falling Commodity Prices Impact Brazil’s Trade Balance
Commodity-rich Brazil happens to be one of the important emerging markets (EEM) of the world. However, declining commodity prices are impacting Brazil’s exports.
China Is Taking a Variety of Steps to Boost Its Economy
To provide a boost to its slowing economy, China cut its benchmark one-year lending rate for the fifth time in 2015. The PBoC slashed it by 25 basis points to 4.4%, effective October 24, 2015.
Dump the MSCI Brazil Index (EWZ) for a hedged option, avoid the FX risk (Part 2)
Continued from Part 1 The Brazilian real has depreciated over 10% since mid-May, and will likely just get worse The U.S. dollar is likely to strengthen into Q3 2013 for several reasons. The first reason is that the tapering consensus is that the Federal Reserve will start ramping down its bond buying program around September. This will […]
Stanley Druckenmiller Exited Position in EEM
Stanley Druckenmiller also sold his position in the iShares MSCI Emerging Markets ETF (EEM).
Are You Riding China’s Stock Market Roller Coaster?
China’s stock market performance lately has been similar to a roller coaster ride. Riders’ enthusiasm on a roller coaster builds as the ride climbs…
Russia’s Industrial Production Contracts Again, RSX Falls 0.49%
Russia’s woes have only deepened with the Federal State Statistics Service releasing industrial output figures for July.
Beyond the Ephemeral: Pay Attention to Demographics
Lost in all the chatter about interest rates is a structural phenomenon that may be of far greater significance: demographics.
Why the long-term prospects for the BRICS network are positive
Because of its burgeoning autonomy, long-term prospects are positive for the BRICS network as well as the other emerging economies that will inevitably join it.
Dollar Index Has Been Falling since Start of 2017
On a year-to-date basis, the dollar index has fallen nearly 9.5% as of August 2, 2017.
Will Trade Deal with Mercosur Bloc Boost Colombia’s Auto Sector?
Colombia (GXG) signed a deal with the Mercosur trade bloc on July 21, 2017, to allow the import of limited quantities of certain products without a tariff in the Colombian market.
Can Global Markets Continue to Surge?
Since the start of the year, global markets have recovered well. The S&P 500 has risen 15.5%, emerging markets have risen 17.2%, and developed markets have risen 13.2%.
Must-know: Key questions to ask when selecting an ETF
iShares now offers 20 low-cost Core ETFs that are a great starting point to consider as core holdings for your portfolio.
Why Stanley Druckenmiller Dissolved His Position in Barrick Gold
Druckenmiller has sold the firm’s position in Barrick Gold, which shows that he might have a strong outlook on the equity market.
Why the Ruble Is on the Rise
The recovery of oil prices in the latter half of 2016 has helped the Russian ruble to appreciate along with improved exports.
What Goldman Sachs Recommends for Yandex
Goldman Sachs (GS) believes Yandex (YNDX) will show a strong performance in the near future.
Why Latin American Economies May Be in Trouble
Worsening economic conditions in Brazil and Venezuela hit economic growth in Latin America in the first quarter of 2015.
Mexico’s growth picks up in June, what will drive growth? (Part 1)
The latest global activity indicator showed a meaningful increase in economic activity The global activity economic indicator in Mexico (EWW) is a gauge of GDP performance by broad industry sectors. It’s published monthly by the Mexican Institute for Statistics and Geography. The global economic indicator indices allow investors to distinguish between growth in the industrial and […]
Dalio’s Bridgewater Associates Increased Its Holdings in EWZ
Ray Dalio increased his firm’s holdings in the iShares MSCI Brazil Capped ETF (EWZ) in 2Q16.
Indonesian Rupiah Fell Due to the Jakarta Attack and Rate Cut
The Indonesian rupiah fell against the US dollar on January 14, 2016, after a terrorist bomb exploded in the capital city of Jakarta.
IMF: Rising Emerging Market Corporate Debt Could Lead to Crisis
In the last ten years, the corporate debt of emerging market economies (EEM) (VWO) (EDC) has been increasing gradually.
Emerging Markets Posted Stronger Gains in Year after Brexit Vote
Economic reforms by the Indian government and improvements in the manufacturing and automobile sectors are the main drivers of EEM.
Industrial Production in Russia Contracts: RSX Increases 1.51%
Industrial production in Russia declined by 5.5% in May on a YoY basis. The Russian economy has seen a slowdown over the past year amid a global drop in oil prices.
Why Brazil’s equity market keeps dropping (Part 1)
Several negative factors have come combined to cause a steep drop in the equities market Over the past month, the main Brazilian ETF, EWZ, has dropped 20% in value. Below is a recap of the negative chain of events that led to this fall and how likely the market will recover. Social unrest: Why Brazil’s equity market […]
Emerging Market Small-Cap Stocks Focus on Local Sectors
Emerging market small-cap stocks offer exposure to consumer sectors. EEMS has 18% exposure to consumer discretionary stocks.
Why the Service Sector’s Contribution to Brazil Is Important
The service sector is the main contributor to Brazil’s GDP and job creation, but it’s currently suffering from structural weakness and poor international performance.
Where Stanley Druckenmiller Is Bullish
Last week, Duquesne Family Office, managed by Stanley Druckenmiller, filed its Q3 13F with the SEC. We’ll look at the fund’s top holdings, buys, and sells.
Brazil’s Inflation Continues to Soar While Growth Is Stagnant
Brazil (EWZ) is in a state popularly known as “stagflation.” The economy is characterized by low growth, high unemployment levels, and a rising inflation rate.
Why the services sector in Brazil continues to expand, but slowly
The Business Activity index (the key index for the Services PMI) remained unchanged, at 51.0. While Transport and Storage reported the fastest growth, the expansion was evenly mediocre across most of the sectors surveyed.
Bridgewater Increased Holdings in iShares MSCI Brazil Capped ETF
Bridgewater Associates is one of the prominent hedge fund management firms.
How Can You Add Carry to Your Portfolio?
Adding carry to your portfolio in a low-return scenario could cushion your portfolio.
Why Emerging Markets Are Rebounding
Emerging markets (IEMG) (AAXJ) are expected to grow at a healthy pace of 4% in 2016 and see even higher growth in 2017.
Why Treasury and mortgage rate spreads hit historic highs
The interest rate spread between 10-year Treasury securities (IEF) and 30-year conventional mortgages (VMBS) was at historic highs at the end of 2008 and the beginning of 2009
EU Equity Valuations Improved on Strong Earnings
The MSCI Europe Index was valued at 14.9x on a one-year forward earnings basis in the week ending July 31, 2015. Valuations rose by 0.71% that week.
Can Malaysia’s Improved Retail Sales Support Economic Growth in 2017?
Retail sales in Malaysia rose 13.9% YoY (year-over-year) in June 2017, compared with its 13.6% gain in May 2017.
Which ETF Can Insulate You from Slowing Global Growth?
EEM stocks are better insulated from slowing global growth. The fund is exposed to global sectors.
Why Is David Rubenstein Optimistic about Brazil?
The Brazilian economy is experiencing contraction due to a fall in commodity prices and the political turmoil. The commodities market is one of Brazil’s most important growth drivers.
Consider Overseas Stock Exposure as the Rate Hike Looms
Consider overseas stock exposure, as US markets look less attractive. Chinese stocks gave returns of 17% YTD. This is due to excess liquidity in equities.
Service Sector in Emerging Economies Remains Mixed in September
Emerging economies remain mixed in September, with Russia expanding and Brazil contracting further. Although Russia has moved back to expansionary phase, its overall economic environment remains challenging with rising inflationary pressure.
Why is the high yield bond market seeing so much fresh supply?
Strong weeks of issuance signify an overall bullish market. High yield issuance for last week was at its strongest so far in 2014.
Understanding the Marginal Decline in Malaysian Exports in June
Exports from Malaysia in June 2017 stood at 73.1 billion Malaysian ringgit (MYR) (about $17 billion as of August 11, 2017), or 10% higher YoY.
What Indicators Should Investors Watch This Week?
As China is one of the important emerging economies, investors should keep an eye on its important indicators.
Why Diversification Is More than Just a Buzzword
Diversification is important because a diversified portfolio has higher risk-adjusted returns than a portfolio exposed to only one security.
Consider Allocating to Emerging Market Small Caps
Emerging markets also appear cheap at the moment compared to US stocks. EEMS is likely to be more volatile (VXX) than EEM.
Why Morgan Stanley Prefers Emerging Markets over US Markets
Similar to other investment banks, Morgan Stanley (MS) doesn’t have high hopes for US markets in 2019.
Why Goldman Sachs Is Optimistic about Alibaba
Alibaba was trading at $169 on September 8, 2017. Its 52-week high is $177 and its 52-week low is $86.01.
What Happens if Snap Sticks to Developed Markets?
IDC notes that ~85% of worldwide spending—totaling $5 trillion—on mobile ads is claimed by the top ten advertising markets, all of which are in the developed world.
Another Reason for Diversification: High US Equity Valuations
High US equity valuations are weighing on investor sentiments. The United States is trading at 100%, 50%, and 74% premiums over Japan, Europe, and emerging markets, respectively.
Must-know: Divergence is the new trend in the global economy
Economic growth is strengthening in some parts of the world, while it’s slipping in others. In other words, as I mentioned in a post earlier this week, the major trend in the global economy is one of increasing divergence, rather than slower growth.
Labeled Green Bonds’ Significance to Investors
Global climate leaders have set a $1 trillion target for green finance by 2020, which would require a tenfold increase in global green bonds issuance.
Unemployment Fell in Russia, Yet RSX Is Down on Oil Woes
According to the August 19 release of the Federal Service of State Statistics, the unemployment rate in Russia edged down by 0.1% to 5.3% in July.
How Has the Russian Stock Market Changed?
The Russian stock market is upbeat, which adds to the ruble’s strength.
Bill Gross Endorses a Corollary to Gresham’s Law
In his Investment Outlook for November, fund manager Bill Gross sees a corollary to Gesham’s law. Gross thinks that cheap money drives out good money.
Investors Should Watch These Economic Indicators This Week
The iShares MSCI ACWI ETF (ACWI), which tracks the performance of the global market, rose 1.1% in December 2017.
Are Russian ETFs Outperforming the Emerging Market Index in 2017?
Russia’s market performance has been affected by geopolitical crisis in Ukraine and Syria since 2014.
Why the Rally in Emerging Markets Is Likely to Continue
The rally in emerging markets (VWO) has mainly been driven by higher earnings growth on the back of an improved business environment, rising exports, and strengthening corporate balance sheets.
A Look at Emerging Markets PMI Reports in December 2017
In this series, we’ll analyze the manufacturing and services activity of China, India, and Brazil (EEM) in December 2017.
How Demographics Are the Key to India’s Growth
Demographics are the key to India’s growth story. India’s strength in numbers is one of its biggest advantages over the rest of the world.
How High Yield Emerging Market Bonds Can Offer Hidden Value
HY EM bonds currently offer higher yields than both high yield US corporate bonds (HYG) (JNK) and high EM sovereign bonds.
Recommendation: Look to select areas of emerging market debt
Select areas of the EM debt sector hold good potential, as many of these countries exhibit low leverage levels and are currently funded through year-end.
Why India Is So Important for Global Pharma
There are several compelling reasons for India’s rising pharma stature, including inexpensive labor, strong government support, and lower production costs.
Coming Full Circle: Revisiting India’s History
This resurgence in economic strength can be largely attributed to then finance minister Manmohan Singh’s new economic policy of liberalization, privatization, and globalization.
US Equities’ Valuations Decline on Global Data: Week Ending June 5
Currently, US equities (SPY) are trading at 17.7x on a one-year forward earnings basis. Valuations decreased by 0.78% in the week ending June 5, 2015.
Emerging Market Equities See Positive Flows in April
The iShares MSCI Emerging Markets Minimum Volatility ETF (EEMV) and several other emerging-market ETFs attracted positive flows totaling $0.3 billion for the week ended May 1, 2015.
Long-term implications of a disconnect between news and strong equity markets
In the short term, recent market action isn’t as irrational as it might appear. First, there’s no clear link between these events and near-term economic or earnings growth.
Apple May Be Finding the Music Streaming Business Tough
Apple is still willing to take a plunge into the music streaming market because of this market’s huge growth potential.
India’s perennial problem: A current account deficit
EM countries become less reliant on short-term foreign capital funding, as evident in improved current account balances and a shift toward longer-term foreign direct investment.