Emerging Markets

BRIC’s, MINT’s, Africa and other places

Money flowing to emerging markets.

This story expands on a theme we spoke about early in the semester. Many of these overseas markets are at levels above where they were before the financial crisis. We in the West are still living it and will continue to live with it. (More banks have failed in the US this year than at this time last year.)  There used to be chatter about emerging markets decoupling from the West. As with all things, generalizations are too vague. China and Russia are more export-oriented, India’s domestic demand is pretty strong too (and I believe in Brazil), I seem to remember an earlier post with graphs. But the really strong performance has been outside the BRICs. Didn’t we have a conversation about Frontier markets and Mongolian cell phone companies…

That said, once this current market weakness passes  I think US markets will play catch up.  My posts may make me sound bearish, but all I really am is contrarian.  Most things I have read recently are generally still cautiously bullish, except a 10% correction call from Bank of America.

Doctor made me get out of most of the index puts today (it was a lazy play), still have some retail. Apple beckons, after this IPAD story, and down 10 points in 3 days. Would like the mid-260’s better but a do-over is probably asking too much.


India and China

The chart speaks for itself. There is a real estate bubble in both places.  I know there is a lot of latent demand for “stuff” in India, there should be in China too. Markets in the US are trying to stay positive for the year.