Last week, two indices dropped for every one that improved. Notably the top six all dropped.
Taiwan (EWT) leapfrogged into top place. Morgan Stanley (MS) recently upgraded Taiwan based acceleration in earnings revisions over the past two months relative to other developing markets. Taiwan has also improved business cycle rankings.
Russia (EWT) kept its second place despite falling. The recent terror bombing has some spooked about internal security but the government is responding strongly and the fundamental industries are moving along fine.
South Korea (EWY), which had been dominating, dropped two place in the table. South Korea is not currently suffering the same inflation woes as some of the other tiger nations but there is concern as to whether this performance is unsustainable and there is increasing anticipation of a correction.
All the emerging nations will increasingly face inflationary pressures for food and other commodities and will be subject to volatility as the established nations recover and demand for goods continue their rise.
Spain (EWP) and Italy both jumped as their debt auction was successful signaling confidence in the underlying strength of the economy.
Brazil fell despite the upgrade from Morgan Stanley.
We will see whether the emerging nations will be stalled by inflation and if the established nations can claw their way back.
|Assets Class||Symbols||01/21 |
The trend score is defined as the average of 1,4,13,26 and 52 week total returns (including dividend reinvested).
(Click to enlarge)
(Click to enlarge)
Disclosure: MyPlanIQ does not have any business relationship with the company or companies mentioned in this article. It does not set up their retirement plans. The performance data of portfolios mentioned above are obtained through historical simulation and are hypothetical.