Man, emerging market equities are in total beast mode.
The emerging markets index MSCI Ishares ETF (EEM) is up almost 30 percent on the year. Turkey and Argentian up almost 40 percent. India, Brazil, and Korea almost 20 percent.
Emerging currencies also showing strength. The dollar is weaker over 5 per cent against Mexico, Thailand, Korea, Russia, Chile, China, and South Africa.
We will have more posts on EMs next week.
China’s Shanghai Composite is also showing signs of life and follow through after breaking out of a year-long trading range last week. In our Week In Review post from Sunday we stated:
Watching the Shanghai for follow through. – GMM, August 27
Though not very compelling, it did.
Blow-off Before Correction?
Global equities seem to be in entering the giddy stage. We wouldn’t be chasing up here and it does kind of feel like we may be moving into a September blow off before the correction we’re expecting in October. Or not.