Wednesday, February 27, 2013
Let's drill down in the emerging markets
Here's EEM, which is the big fund the big boys play with and which is grossly overexposed to the BRICs:
Is it rolling over? Is it doooooom? That volume of the last week does still look supportive.
I'm personally interested in buying Mexico or the Andean ETF:
Well, they seem to be rolling over too. Maybe the heavy exposure to metals is a bad idea. Maybe I should stay away?
Then I looked at a couple east Asian growth economies:
Thailand might be toppy, or it might not; Indonesia looks positively ravishing.
That's interesting to me: as far as I know, Thailand and Indonesia don't make money on metals, they make it in manufacturing.
So is the proper thing to look for manufacturing-heavy emerging markets? Again, is the metals play dead?