Let's talk a little more about divergence - as in wacky divergences.
Last time, we looked at divergence through the lens of interest rates and how rates - principally measured by the yield on the U.S. Treasury 10-year note - were going lower when they were expected to move higher as the Federal Reserve tapers its monthly bond purchases.
But there's another divergence at work, and it strikes me as dangerous.
We're talking about the rising prices of emerging markets stocks and bonds...
emerging markets index
This Is Like Investing in China… In 1980
Hardly anyone would argue that China isn't an economic miracle.Read More...
Over the last 20 years, its 1.3 billion people have propelled the Chinese economy into the world's No. 2 spot.
But two decades of blistering 10% annual growth have moderated to 7%.
However, a potential sea change is underway in its southern neighbor, India.
With a new, impressive prime minister, and a burgeoning consumer population, they're setting up as the next economic miracle... Full Story
A Secret Gem Hidden Among 2014's Emerging Markets
Emerging markets have experienced record outflows so far this year, as global capital sailed back to safer markets.
Just in the first five weeks of 2014, $18.6 billion fled emerging markets - a staggering number when compared to the $15.2 billion in emerging market outflows for the entirety of 2013.To continue reading, please click here...
Emerging Markets Chart: These Countries Have Been Hit the Hardest in 2014
More than $7 billion was withdrawn from exchange-traded funds (ETFs) investing in emerging markets in January 2014, and this emerging markets chart shows which countries have been hit the hardest.
The S&P 500 has dipped 4.3% since the start of 2014, but that pales in comparison to the losses experienced by emerging markets ETFs.
ETFs serve as a good measuring stick for emerging market performance because they hold many of the top stocks, securities, or bonds from that country.To continue reading, please click here...
The Top Emerging Market ETFs of 2014
Investors have been running from emerging markets in 2014, but two emerging market ETFs have pulled in double-digit gains this year.
More than $7 billion has been withdrawn from emerging market exchange-traded funds in 2014. As a result, funds like the iShares MSCI Brazil Capped Index Fund (NYSE: EWZ) and Global X FTSE Argentina 20 ETF (NYSE: ARGT) have dropped 10.3% and 9.4%, respectively.To continue reading, please click here...
Best Investments in Emerging Markets: MINT Is the Next BRIC
In 2001, the BRICs - Brazil, Russia, India, and China - would be the engines of economic growth. These four countries demonstrated enough political stability, population growth, and openness of trade to warrant being acclaimed as the economic superstars of the next decade.
They were named the best investments to make to play global growth. And they delivered.To continue reading, please click here...
- 4 Drug Stocks to Buy Now to Capitalize on Emerging Market Growth Overall, this sector has healthy global sales of $959 billion and is expected to grow those sales at a rate of 4.5% a year. But in emerging markets, sales in this sector will grow at three times that rate. And on top of that, another development will make these markets even more lucrative. We've identified the handful of companies best-positioned to take advantage of this...
- Five High-Yield Sin Stocks to Buy to Capture Emerging Market Growth Tobacco. Fast Food. Alcohol. Gambling. These are some of humanity's favorite vices, which also happens to make them excellent investments. After all, doing things that are bad for you not only never goes out style, it's one of the world's most dependable growth markets. But there's a secret sauce that can make some 'sin stocks' even sexier...
- How to Invest in Emerging Markets Using One Simple Strategy Investors love emerging markets because they know that's where most of the world's growth is. But not all emerging markets are created equal. Fortunately, the best places to put your money all have something in common. You just have to look for one key trait...
- How to Invest in Frontier Markets and Tap the World's Fastest Growth So many times people miss out on the early, most lucrative stages of a blockbuster investing trend like tech or emerging markets simply because they don't realize how big it will turn out to be. That's why we want our readers to know about frontier markets now... Don't miss this opportunity...
Don't Blame Wal-Mart (WMT) and Cisco (CSCO) Slumps On Emerging Markets
Cisco announced plans to cut 4,000 more jobs (5% of its global workforce); the sales forecast for the quarter came in surprisingly low.Read More...
- Egypt Ousts Morsi: Another Sign of Emerging Market Woes Egypt’s uprising shows that emerging market middle classes desire more economic freedom. Where will protests next emerge? Higher food prices are one clue. Read more... Read More...
Here’s How to Invest in Africa’s $300 Billion Electricity Boom
President Obama is wrapping up a wide-ranging trip to Africa this week, one in which he talked about everything from human rights, the triumphs of Nelson Mandela, a return to growth in Zimbabwe and the prospects of an African renaissance.
But it was his comments about access to electricity that should have drawn the most attention. The President is setting the stage for a huge leap in Africa's standard of living - and most people probably didn't notice.
- Why It Pays to Invest in Emerging Market Dividend-Payers Contrary to what you may think, the U.S. is not the best performing market in the world. Frank Holmes discusses why a great place to search for yield now is overseas… Read more... Read More...
Buy Into the Only Real Economy Left in the World
With most of the world's major economies running the printing presses to the point of absurdity, there's one country that's in the catbird seat when it comes a strong, stable economy.
It's a country that runs a budget surplus, has interest rates above the level of inflation, and also has a trade surplus.
And it's only going to get better.
Here's the country that's got its economy firing on all cylinders...