How to Beat the Bear with Emerging Market Stocks
Jul 23rd, 2008 | By Irwin Greenstein | Category: Emerging MarketsUS stocks haven’t exactly been putting in stellar performances lately. But that’s not the case for emerging market stocks. Taipan Emerging Markets blog editor Irwin Greenstien’s Emerging Market Index is up 9.3%. That’s after 5% gains last week…
I won’t regurgitate the bad news on Wall Street, since I don’t want to rub it in. All I can say is that while most investors are crying in their beer, readers of the Taipan Emerging Market Blog are raising a glass of champagne. (Oops, did I just rub it in?)
Once again the best news comes out of Asia. Our biggest winner this week is India’s Sensex Index (Bombay: BSESN) at +3.99%. It barely beat out our long-term gainer, the Shanghai SSE Composite Index (Shanghai: 000001.SS), which rose 3.49%.
The Times of India credits the boost to expectations on inflation.
Data released after market closed on Thursday showed annual inflation at 11.91% in early July, slightly higher than the previous week’s 11.89%, but below market expectations for more than 12%, according to the Times of India.
It also reported that lower crude prices helped interest-sensitive sectors like banks and real estate.
If this trend can continue in India, it’s likely to spread to other emerging markets. Inflation has been hurting just about all of these markets – undermining otherwise thriving economies. Although it’s too soon to tell if this is a long-term trend, I’d suggest you put your broker on speed dial.
ALL ORDINARIES IDX (ASX: AORD) Australia
BSE SENSEX (Bombay: BSESN) India
IBOVESPA SAO PAULO (BVSP) Brazil
EGYPT CMA GENL INDX (Cairo: CCSI) Egypt
HANG SENG INDEX (HKSE: HSI) Hong Kong
COMPOSITE INDEX (Jakarta: JKSE) Jakarta
COMPOSITE INDEX (Kuala Lumpur: KLSE) Kuala Lumpar
KOSPI Composite Index (KSE: KS11) South Korea
MERVAL BUENOS AIRES (Buenos Aires: MERV) Argentina
IPC (Mexico: MXX) Mexico
NZX 50 INDEX GROSS (NZSE: NZ50) New Zealand
IGBM (Madrid: SMSI) Spain
TEL-AV TASE-100 IND (TA100) Israel
TSEC weighted index (Taiwan: TWII) Taiwan
SSE Composite Index (Shanghai: 000001.SS) Shanghai
iShares MSCI South Africa Index (EZA) South Africa
RTSI INDEX (RUS: RTS.RS) Russia
ISHARES MSCI THAILAN (NYSEArca: THD) Thailand
iShares MSCI Turkey Invest Mkt Index (TUR) Turkey
Source: Taipan Emerging Market Index Gains 9.3%
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