There is close correlation between all markets in the world. This year, the U.S. has grossly outperformed the emerging markets. In Asia, we’re down between 15 percent and 25 percent in markets. In Eastern Europe, even more. The U.S. this year is a wonderful market relative to the rest of the world.
I think this outperformance may go on for a while. Some emerging markets could rebound more strongly than the U.S. because they are more oversold. Like India, the currency is down 18 percent since July and the market is down 22 percent. Currency adjusted, the market has been extremely weak and is oversold. It could rebound somewhat here, but forget about new highs. It’s not going to happen anytime soon. - in Bloomberg TV
ETFs, iShares MSCI Emerging Markets Index ETF (EEM), iShares MSCI Brazil Index ETF (EWZ), SPDR S&P 500 ETF (SPY), iShares Russell 2000 Index ETF (IWM)
Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.
