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 (NYSE: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.