Emerging markets are a currency trade with equities attached
The index traded at 67.97, +0.28% today. Most of the return dispersion in EM comes from something other than the companies.
Free 4 min read
EEMIWM
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EEM
EEM
Delayed
Notes mentioning EEM
6A cheap index can stay cheap when much of it does not make money
Small caps look cheap against large caps. A large share of the index loses money, and that part of it has no earnings for a valuation to recover to.
Free 2 min read
IWMEEM
Dividends from state-linked companies are a policy choice
The payout trends I track across the state-linked companies in the index.
Paid 2 min read
FXIIWM
Policy support arrives in steps, and each step gets priced
Support for the economy tends to come in stages rather than one large package. Markets rally on each stage and then wait for the next.
Free 2 min read
FXIIWM
Fiscal worries reach the index through the currency first
When investors worry about a government's finances, the currency weakens before the equities do. For a dollar investor, that is most of the loss.
Free 2 min read
EWZIWM
When a market is priced for the worst, less bad is enough
Large Chinese companies trade at valuations that assume very little goes right. That makes the bar for a rally low.
Free 2 min read
FXIIWM