Written by David Fabian, April 04th, 2017
Emerging market stocks have been the perennial underdog for the last half decade. Their persistent underperformance has been blamed on commodity fluctuations, currency woes, and a host of other fundamental headwinds. Nevertheless, these regional stocks are making a bold statement in the first quarter of 2017 that may ignite further interest in their ongoing growth potential.
A screen of the top performing, non-leveraged or inverse exchange-traded funds through the first three months of the year reveals a pointed theme. Brazil, China, India, Argentina, and other emerging market indexes mounted the strongest returns of all asset classes. Of those nations, smaller company shares were the biggest standouts.
Read the complete article at NASDAQ.com
Written by David Fabian, July 12th, 2016
We are now down to less than a month before the 2016 Summer Olympics in Rio de Janeiro, Brazil kick off on August 5th. As is often the case every four years, many people will be tuning in to the host country’s economic and social aspects as much as the global athletic achievements.
From an investment standpoint, Brazil is considered by many to be an emerging market nation similar to China, India, and Mexico. It is also one of the largest economies in South America. Brazilian stocks make up just over 7% of the broad-based Vanguard FTSE Emerging Market ETF (VWO) and are the fifth largest nation represented in the index.
Written by David Fabian, September 10th, 2015
There is an old saying on Wall Street that I will paraphrase as: the news is always best at the top and worst at the bottom. That is because good news drives buyers in and bad news generally causes widespread selling and/or panic as sentiment reaches extremes. Once all of the band wagon investors have either jumped on or stepped off a trend, the price begins to reverse course. Read more
Written by David Fabian, July 09th, 2014
Emerging market ETFs have been one area of the market that I have been admittedly cautious about adding to. Over the last several years they have consistently underperformed their U.S. and European counterparts as investors have adopted a home-country bias to their portfolios. Read more
Written by David Fabian, April 09th, 2014
The recent strength in emerging market countries has caught many investors, including myself, by surprise. There have surely been pockets of strength in thriving economies such as India and Taiwan, but the majority of broad-based emerging market indices have been unable to mount a convincing drive higher. Nearly every rally attempt has been met with resistance that has failed to gain momentum or produce a substantial breakout. Read more