It should make everyone nervous that all media inquiries I’ve received lately primarily concern international investing and ETFs. Of course, this has been the hot area of the past year and everyone’s keen to know if it will continue.
If you study our DSP (Dave’s Special Portfolio) you’ll note it heavily dominated by overseas markets. Our positions are our best answer to all the queries, but I don’t like such a pat scenario. All these markets are overbought, but I know from experience that can continue. Also, as most know, last year's winners can always lay an egg the following year as investors chase past performance. Anyway, we’ll just remain with a systematic 'thank you'.
The major negative for US investors overseas remains currency risk. Recently, the Nikkei and Topix indexes have rallied over 20% while EWJ (Japan ETF) has only achieved half that amount. The reason had been a weak yen. Therefore, whether it's euros or yen, US investors need to understand this unique issue.
EEM (Emerging Markets ETF) is now at a new high:
In Asia, several markets continue surge to new highs: