Emerging Markets Flashing Warning Signals

Includes: EEM, GLD, SPY
by: Graham Summers

The following is an excerpt from my paid newsletter Private Wealth Advisory. In it, I detail how emerging markets and gold are both flashing MAJOR warning signals that to US stocks.

Emerging markets, which have led the S&P 500 for years, are flashing MAJOR warnings signals.

Remember, the emerging markets bottomed before the S&P 500 (November 2008 vs. March 2009) during the Crash.

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Emerging markets ALSO led the S&P 500 during the April 2010 top by roughly one month (they topped in early April while the S&P 500 topped at the end of April):

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Finally, emerging markets ALSO bottomed before the S&P 500 during the rally from the summer of 2010 until now:

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Another market leader flashing a major red flag is gold, which has ALSO led the S&P 500 since the 2008 crash:

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As was the case with the emerging markets, gold bottomed in November 2008, leading the S&P 500 by roughly three months. This is why I want to emphasize that gold already began a significant correction yesterday while the S&P 500 continued its melt-up.

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This is yet another serious warning sign that US stocks are on borrowed time. Be on guard, we could be putting in a MAJOR top soon.