Archive by Author

Did We Just See A Capitulation Low?

Image 1

Today was undeniably ugly with the S&P 500 down nearly 4%, the Nikkei down 4.6%, MSCI Europe down 4.7% (although in USD terms the Nikkei was down just 1.7% and MSCI Europe was down just 2.9%). More stunning, however, is the fact that US stocks were down by at least 3% on consecutive days. This is […]

EM Stocks Washout Update

Pic4

EM stocks as measured by the MSCI EM Index are now down 23% from their April high and 26% from their August 2014 high. The last real emotional low we saw in EM stocks was back in 2011 when the MSCI EM Index fell 29% in four and a half months into September of that […]

How Exposed is Your Developed Markets ETF to Chinese Slowing?

Many investors in ETFs that focus on developed market stocks may be more exposed to slowing Chinese and emerging market growth than they realize. China and other emerging markets have become a larger and larger driver of global growth, but their slowing growth rates affect some economic sectors much more than others. Why is this […]

Is the Chinese Yuan Undervalued or Overvalued?

Pic3

Almost all of the recent analysis surrounding China’s recent currency fluctuation takes for granted that China just joined the global currency war by engaging in competitive devaluation in an effort to spur exports and thus growth. We offer a different take, that the recent move that in effect loosens up control over the peg (slightly) is […]