Are Emerging Markets Getting Toppy?

For what it's worth [and a repeat of what I mentioned this morning on CNBC's Squawk Box]: Earlier this week the Emerging Market's Telecom (ETF) closed-end fund went to a premium for the first time since 1992. To contrarians like David Tepper of Tepper Capital in San Francisco, who specializes in closed-end funds, that and the narrowing discount of the Morgan Stanley Emerging Markets Fund (MSF) are indications that the emerging markets are getting toppy.

"When I look at situations like this," David told me, "I am looking for trends [either up OR down] that have been in force for three to five years, that may change [and possibly reverse] within an upcoming six to 12-month period. Those are the kind of time frames I deal in."

He adds:

"Calling a top on a timely basis is never easy and is something I never try to do. All I can attempt to do is balance risk vs. reward on a rational basis."

Can't ask for anything more.

MSF 5-yr chart