Eagle Daily Investor

How China and Emerging Markets Have Quietly Rebounded

[Chinese Dragon]

The first quarter of 2014 is almost in the books, and so far things have been a lot tougher in the markets than the previous two years. For example, year to date through March 25, the S&P 500 is up about 1.8%. Last year, the index was up nearly 6% through the first three months. In 2012, we already were up about 11%.

Yes, it’s been harder to make money this year, and that’s particularly true if you’ve been allocated to China and/or emerging markets. The charts here of the iShares China Large-Cap ETF (FXI) and the iShares MSCI Emerging Markets (EEM) show the respective tumble that took place in January, which was followed by a lot of volatility through mid-March.

FXI_032614

EEM_032614

Recently, however, stocks in both China and the emerging markets have staged a quiet comeback. FXI just broke above its 50-day moving average, while EEM now is back above both its 50- and 200-day moving averages.

So, is the move in China and in the emerging markets the beginning of more upside in these two sectors?

I am going to let the data make the official judgment, but if you are looking for two value sectors that are starting to see a lot of capital flowing their way, then certainly these two areas deserve serious consideration.

If you want to know what I am buying right now, and how you can profit from trends in the current market, then I invite you to check out my Successful Investing newsletter today.

Paul on Patriotism

“Real patriotism is a willingness to challenge the government when it’s wrong.”

–Ron Paul

I don’t always agree with the colorful Ron Paul, but his thoughtful commentary here on patriotism is a lesson that all Americans should heed.

Wisdom about money, investing and life can be found anywhere. If you have a good quote you’d like me to share with your fellow Making Money Alert readers, send it to me, along with any comments, questions and suggestions you have about my audio podcast, newsletters, seminars or anything else. Ask Doug.

In case you missed it, I encourage you to read my e-letter column from last week about what the Federal Reserve’s policy change means for the economy. I also invite you to comment in the space provided below.

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About Doug Fabian

Doug Fabian is the editor of the monthly investment newsletter Successful ETF Investing and is the host of the syndicated radio show, "Doug Fabian's Wealth Strategies." Taking over the reins from his dad, Dick Fabian, back in 1992, Doug has continued to uphold the reputation of the newsletter as the #1 risk-adjusted market timer as ranked by Hulbert’s Investment Digest. Doug published the book, "Maverick Investing," and has appeared as a commentator on CNBC, Fox News and CNN. He also has been quoted in the Wall Street Journal, USA Today, Barron's and other publications.

View all posts by Doug Fabian →

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