There’s been a great deal of attention paid to Europe’s recession-dodging prowess. An even greater focus has been awarded to the U.S. and Japan as the economic powers tackle “deflation.”
Yet it’s the developing economies that continue to drive global equities higher… a fact that I’ve been addressing for months. For example:
1. On 6/9, in ”Which Southeast Asian Country Keeps Defying The Downturn,” I explained how the iShares MSCI Thailand Fund’s (THD) exposure to well-capitalized financial companies had been helping the investment achieve super-sized returns.
2. On 6/21, in “China’s Asian Neighbors Have The Most Attractive Stock ETFs,” I expressed how a stronger Chinese yuan would aid countries like Singapore (EWS) and Malaysia (EWM) in their exporting endeavors.
3. On 7/14, in “South Korea ETF Likely To Win With The ‘Won’,” I gave 3 critical reasons for the ETF’s likely success, including currency, economic and price trends.
Since emerging markets effectively bottomed in May, most of them logged “higher lows” in the months of June and July. None have been more noticeably successful than Asian country ETFs and CEFs. In fact, some Asian ETFs are within striking distance of new 52-week highs. (As impressive as the turnaround in the S&P 500 has been, it’s still -8% off the 52-week!)
|Intra-Day Highs For Asia ETFs (8/4/10) In Relation to 52-Week Highs|
|Intra-Day % Below|
|Korea Fund (KEF)||0.0%|
|Thai Fund (TTF)||0.0%|
|iShares Thailand (THD)||0.0%|
|iShares MSCI Malaysia (EWM)||-0.7%|
|iShares MSCI Singapore (EWS)||-1.0%|
|iShares MSCI Hong Kong (EWH)||-2.7%|
|iShares MSCI South Korea (EWY)||-3.9%|
Disclosure Statement: Gary Gordon, MS, CFP is the president of Pacific Park Financial, Inc., a Registered Investment Adviser with the SEC. The company and/or its clients may hold positions in the ETFs, mutual funds and/or index funds mentioned above. The company receives advertising compensation at the ETF Expert web site from Invesco PowerShares Capital Management, LLC. The commentary does not constitute individualized investment advice. The opinions offered herein are not personalized recommendations to buy, sell or hold securities.