EM vs US Dollar is the biggest story of the spring

Posted by

In the middle of February, I said “Tell me when the dollar rally ends, I’ll tell you when EM starts working again.”

I showed the below chart, in which you can see emerging markets underperformance vs the S&P 500 in the top pane, with the US dollar index in the bottom – a perfect inverse correlation:

eem

To me, the single biggest story of the spring is the reversal of the prior trend, which began almost the exact day of my post.

Below, I bring my chart up to the present:

eem 2

The big question is now whether or not it’s a counter-trend move destined to fizzle or the start of something new.

This content, which contains security-related opinions and/or information, is provided for informational purposes only and should not be relied upon in any manner as professional advice, or an endorsement of any practices, products or services. There can be no guarantees or assurances that the views expressed here will be applicable for any particular facts or circumstances, and should not be relied upon in any manner. You should consult your own advisers as to legal, business, tax, and other related matters concerning any investment.

The commentary in this “post” (including any related blog, podcasts, videos, and social media) reflects the personal opinions, viewpoints, and analyses of the Ritholtz Wealth Management employees providing such comments, and should not be regarded the views of Ritholtz Wealth Management LLC. or its respective affiliates or as a description of advisory services provided by Ritholtz Wealth Management or performance returns of any Ritholtz Wealth Management Investments client.

References to any securities or digital assets, or performance data, are for illustrative purposes only and do not constitute an investment recommendation or offer to provide investment advisory services. Charts and graphs provided within are for informational purposes solely and should not be relied upon when making any investment decision. Past performance is not indicative of future results. The content speaks only as of the date indicated. Any projections, estimates, forecasts, targets, prospects, and/or opinions expressed in these materials are subject to change without notice and may differ or be contrary to opinions expressed by others.

Wealthcast Media, an affiliate of Ritholtz Wealth Management, receives payment from various entities for advertisements in affiliated podcasts, blogs and emails. Inclusion of such advertisements does not constitute or imply endorsement, sponsorship or recommendation thereof, or any affiliation therewith, by the Content Creator or by Ritholtz Wealth Management or any of its employees. Investments in securities involve the risk of loss. For additional advertisement disclaimers see here: https://www.ritholtzwealth.com/advertising-disclaimers

Please see disclosures here.

What's been said:

Discussions found on the web
  4. w88 commented on Sep 21

    … [Trackback]

    […] Info to that Topic: thereformedbroker.com/2016/03/31/em-vs-us-dollar-is-the-biggest-story-of-the-spring/ […]

  5. https://bitcoineraonline.com/ commented on Sep 23

    … [Trackback]

    […] Find More on that Topic: thereformedbroker.com/2016/03/31/em-vs-us-dollar-is-the-biggest-story-of-the-spring/ […]

  6. 토토사이트 commented on Sep 26

    … [Trackback]

    […] Find More to that Topic: thereformedbroker.com/2016/03/31/em-vs-us-dollar-is-the-biggest-story-of-the-spring/ […]

  7. PG SLOT commented on Nov 25

    … [Trackback]

    […] Read More to that Topic: thereformedbroker.com/2016/03/31/em-vs-us-dollar-is-the-biggest-story-of-the-spring/ […]

  8. rbc login commented on Dec 01

    … [Trackback]

    […] Read More to that Topic: thereformedbroker.com/2016/03/31/em-vs-us-dollar-is-the-biggest-story-of-the-spring/ […]

  9. Read More commented on Dec 11

    … [Trackback]

    […] There you will find 94501 more Information to that Topic: thereformedbroker.com/2016/03/31/em-vs-us-dollar-is-the-biggest-story-of-the-spring/ […]

  10. Regression testing commented on Dec 21

    … [Trackback]

    […] Read More on that Topic: thereformedbroker.com/2016/03/31/em-vs-us-dollar-is-the-biggest-story-of-the-spring/ […]

  11. 토토사이트 commented on Dec 27

    … [Trackback]

    […] There you can find 73101 more Information on that Topic: thereformedbroker.com/2016/03/31/em-vs-us-dollar-is-the-biggest-story-of-the-spring/ […]

  12. DevOps Solutions commented on Jan 12

    … [Trackback]

    […] Information on that Topic: thereformedbroker.com/2016/03/31/em-vs-us-dollar-is-the-biggest-story-of-the-spring/ […]

  13. Buy Dumps pin commented on Jan 12

    … [Trackback]

    […] Find More on on that Topic: thereformedbroker.com/2016/03/31/em-vs-us-dollar-is-the-biggest-story-of-the-spring/ […]

HowIInvestMyMoney