Monday, April 06, 2009

Emerging-Market Stocks Reach 6-Month High

Emerging-market stocks climbed to the highest in almost six months as commodity prices advanced on speculation stimulus packages are beginning to thaw global credit markets and revive economic growth. The MSCI Emerging Markets Index added 1.6% to 626.92, the highest since October 14 (see chart above). The index, which lost 54% of its value last year, has gained 11% in 2009 as governments take steps to increase liquidity and boost financial aid for developing nations hardest hit by the global credit crunch.

3 Comments:

At 4/06/2009 7:32 PM, Blogger PeakTrader said...

I doubt this will be another remarkable cyclical bull market, similar to 2002-07. It looks like a bear market rally. It could be a double-dip recession, i.e. W-bottom over the next two or three years. The Fed will have the impossible task of preempting inflation and sustaining growth.

Also, in reply to another comment, U.S. manufacturing is the opposite of "hollowed-out." U.S. manufacturers shifted into higher quality "core" goods with market power. The U.S. made up in value what it lost in volume, while many export-led economies had to make up in volume what they lost in value.

 
At 4/07/2009 8:41 AM, Blogger 1 said...

"Anyone seen the BALTIC DRY INDEX around here?"...

Have YOU looked for it yourself or are you just whining as usual?

Do you even know what the Baltic Dry Index is all about?

 
At 4/07/2009 11:22 AM, Anonymous Anonymous said...

Peaktrader,

I am not an economist but an investor. I have to wonder what has changed to motivate me to invest inside of the USA?
I see a President who is trying to spend his way out of a recession as the former USSR would do.

We have Blue Prints to fix a recession with authors like JFK,Reagan,Bush,Clinton and Bush with a current President making the choice to use non of them.

We have not changed Mark to Karket, Up-tick rule, Cap-Gains, Income Tax or anything else.

As Grandma has moved into the Money Market 37 trillion dollars in wealth has went where?

I see the task of the Fed as simple. Follow existing Blue Prints instead of trying to create a European Lite Model that will not work longer then 10 months.

 

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