Everyone else is knee-deep in shit trying to give their story on why EM currencies are getting hammered. There’s enough noise on that front for you to sort through elsewhere. Take a look at these two articles to get away from that:
- Because, valuations.
- Everyone else fucking hates them.
If you have time and patience, I would be buying these emerging nations. So far this year the EEM is already down about 8%. It probably still has a little ways to go, but at these valuations, how can you hate them over the long run?
First, let me apologize for that dismal loss last night and the embarrassing 0-3 start in title town. At least the offense actually put up some stats last night… the good ones were just waaay overshadowed by the turnovers.
Here are some great reads for your Monday:
- Make sure you save for retirement, Jack (Bloomberg)
- China’s manufacturing gauge is at a 6 month high (Bloomberg)
- US growth picked up in August (Calculated Risk)
- How tapering impacts risky assets (Research Affiliates)
- 4 reasons to own emerging markets (iShares)
- AAPL up on sales of 9 million+ new iPhones (Tech Crunch)
It appears that without an announcement of a China Mobile deal, analysts at Bank of America, UBS, Credit Suisse, and JP Morgan are doubting the ability of the iPhone 5C to succeed with consumers in the emerging markets. You can read about the downgrades on Value Walk.
So far today AAPL is down almost 5% on the news.
My apologies on essentially neglecting my blog over the last week. While I made some tweets… or mainly re-tweets, I was very busy last week with work and didn’t have much time to make a post. I will try to be more resourceful with my time this week.
Last week it appears that Emerging Markets began to come back to life, and today that narrative appears to be confirmed according to price action in $EFA, $EWZ, $RSX, $INDA, and $GXC. Most of this reincarnation seems to be based on data hinting that worries about China may be overblown.
While September is generally a weak month for US markets, we could see a positive performance if global data continues to turn more positive. This is especially possible in my eyes when you consider August’s extreme weakness. Here are a few articles I enjoyed this morning and I hope you will enjoy them also:
- Doubtful Obama gets political support on Syria… although he doesn’t need it (Sober Look)
- August’s poor job numbers can apparently be blamed on porn (Dr. Ed’s Blog)
- As they say: “Bull markets climb a wall of worry” (Big Picture Blog)
Have a great afternoon!
That’s right, I’ve had to witness two days of facebook, twitter, and instagram posts about The Backstreet Boys who recently had two stops in NC. Quite frankly, it makes me sick to think that boy bands are able to make a reunion tour successful when there are great musicians out there creating actual music and not soppy pop.
So today I leave you with some great reads that will not play games with your heart:
- Hedge funds are getting waxed this year (WSJ)
- How recent USD strength has bludgeoned Emerging Markets (Sober Look)
- Mish says to expect less growth in China (Mish)
- What determines the return on gold? (Noahpinion)
- KC FED shows improved manufacturing in August (Calculated Risk)