Mike Panzner observes that after nearly two years of outperformance, the MSCI Emerging markets index has broken a key uptrend relative to MSCI EAFE. Is the shift away
from emerging markets and into more mature economies reflective of where growth
is heading, or does it reveal a loss of risk appetite? We suspect the
latter. (Forbes disagrees).
Ratio of Emerging Markets to Europe/Asia
Source: Mike Panzner
Note: EAFE stands for
EAFE Index. It covers stocks from much of the globe, with the fund holding
nearly 800 non-U.S. securities.
Quote of the Day
“It isn’t as important to buy as cheaply as
possible as it is to buy at the right time”