Douglas Davenport: In the first half of the year, America was on a roll. Until August, U.S. equities handily outperformed global markets, as money flooded in from around the world.
The U.S. showed particular strength against the emerging markets. Fears about a slowdown in global growth and expectations of higher U.S. interest rates prompted investors to invest in the country considered the safest of safe havens. As a result, the iShares MSCI Emerging Markets ETF (NYSEARCA:EEM) fell to its lowest level relative to the S&P 500 since the financial crisis.
But over the past couple of months, that trend seems to have changed. As you can see from the chart below, the S&P 500′s outperformance versus emerging markets peaked during the summer and has begun to fall.
Why the Trend Is Shifting
Part of the reason for this reversal is improving sentiment toward the emerging markets as the economic picture in Europe brightens. But the other half of the equation is the damage done to the United States’ reputation around the world. International investors can no longer ignore our dysfunctional political system. And the longer the government remains closed, the lower the world’s opinion of us is going to sink.(...)Click here to continue reading the original ETFDailyNews.com article: Why The Trend Is Shifting Towards Emerging MarketsYou are viewing an abbreviated republication of ETF Daily News content. You can find full ETF Daily News articles on (www.etfdailynews.com)
- Emerging Global Advisors Launches the First Emerging Markets Dividend Growth ETF (EMDG)
- S&P 500 Index: Longer Trend Weakening, Daily Trend Turning
- Why Investors Should Consider Emerging Markets
- Why I’m Still Positive On This Emerging Markets ETF
- What Key Emerging Markets Are Saying About The Global Economy Now
Nasdaq quotes delayed at least 15 minutes, all others at least 20 minutes.
Markets are closed on certain holidays. Stock Market Holiday List
By accessing this page, you agree to the following
Press Release Service provided by PRConnect.
Stock quotes supplied by Telekurs USA
Postage Rates Bots go here