Emerging Markets
There is much discussion on what will happen to the emerging markets as the US economy slows or as I have stated many times, contracts. As aggregate demand in the United States falls the price of oil, concrete, timber, copper and engineering will also fall and the economies in the emerging markets will also contract at a greater pace.
Given, their equity markets have contracted significantly more than the SP 500, the question needs to be asked again. How will the emerging market economies perform relative to US economy? Will the emerging market economies contract or will their aggregate demand increase - from these levels? or will those economies take this opportunity to invest as the US recovers from its debt indulgence? There is a price level that EEM is a buy and it will begin to exert is lack of correlation to the US economy and therefore market.
It is time to get your feet wet with a quarter position, about 1.25 to 2.00 percent of your portfolio.
Given, their equity markets have contracted significantly more than the SP 500, the question needs to be asked again. How will the emerging market economies perform relative to US economy? Will the emerging market economies contract or will their aggregate demand increase - from these levels? or will those economies take this opportunity to invest as the US recovers from its debt indulgence? There is a price level that EEM is a buy and it will begin to exert is lack of correlation to the US economy and therefore market.
It is time to get your feet wet with a quarter position, about 1.25 to 2.00 percent of your portfolio.
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