wheel trade

Is the Emerging Markets crisis over?


As the SPX is about to make a new high today, I can’t help but think how ugly things were during the beginning of the year.  Argentina was in turmoil, riots in Brazil, and Turkey was in a near state of anarchy.  Has everything changed that much?  Judging from the chart below the market’s perception has changed a lot.  After nearly 4 months, volatility in the EEM is settling down and not bouncing back up.

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The Others and the VXEEM

My kids came back from the beach today with a record treasure trove of sand dollars.  My oldest son scooped 30+ by himself.  My tally for the year is 1, all year.  Same beach but we went at different times.  He got the 830 am prime time slot at low tide while I was toiling away in front of my screens.  Playing catch up to a 9 year old is tough.  I think that little story is a metaphor for the US Equity market and the Emerging Markets.  The twin towers of timing and opportunity are lurking in the background.

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