Emerging-market stocks have been unable to emerge from years of weakness. The ratio between the MSCI Emerging Markets Index and the MSCI World Index of developed markets fell about two weeks ago to its lowest level since 2004, according to data compiled by Bloomberg. Wednesday’s close for the ratio was just 1.7% above the low. “Keep this one on your radar,” Callum Thomas, head of research at Topdown Charts Ltd., wrote about a similar chart Tuesday in a blog post. Emerging-market shares are ripe for a rebound, he wrote, as they are relatively cheap and the countries’ economies appear more stable.
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