By Tim Seymour
Do investors suddenly believe that the best trade of the last few years is entering a crisis stage? The moves of the last four weeks tell you massive fund flows are at work and allocations are changing.
We've seen a 16% drop since May 8, correlated with the identified bloodbath in emerging market currencies and commodities. The Morgan Stanley Emerging Markets Domestic Fund ETF (EDD) is focused on the local currency debt of emerging market sovereigns and some corporates.
Places like Turkey, Mexico, and Poland are well-represented here. Do investors have ADD and thus are forgetting that fundamentals here are superior to G3? We're setting up for a major opportunity.