A rising dollar stalls all boats (so far)
posted on December 16, 2009 at 4:55 pm
The rising dollar (and the falling euro and yen) has been enough to stall the emerging economy stock markets that have outperformed the U.S. Standard & Poor’s 500 stock index since this huge rally began on March 9.
The “stall” is just that. Emerging economy stock market indexes have simply stopped moving up. They certainly haven’t yet tumbled enough to present opportunistic investors with a lot of bargain buys.
But considering the degree of out-performance since March 9—the iShares MSCI Emerging Markets Index ETF (EEM) was up 100.3% from March 9 as of the close on December 16 versus a mere 56.2% gain for the S&P 500 during that period—even a stall is a significant change.
Here’s what the stall looks like. Read more
