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  • bee August 2014
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Rising Rates Not Always Emerging Markets Poison

FYI: The taper tantrum was brutal, but rising
rates do not have to mean lousy performance for emerging
markets.
Regards,
Ted
http://blogs.reuters.com/james-saft/2014/07/31/rising-rates-not-always-emerging-markets-poison/?print=1&r=

Comments

  • As I mentioned in another thread listed below:

    Be aware that other Central Banks (Bank of Japan for one) are ready to open up their own liquidity spigot as the Fed tightens down their own. Prepare for burps, air bubbles and more burps as markets react to these changes.

    If the US stock market's performance is correlated in anyway with five years of Fed support I can imagine the Japanese stock market and stocks closely tied to Japan being the next benificiary of BofJ's new round of money printing.

    Ted's link to a most recent Wealth Track interview with Jason Trennent mentions Japan as a market to consider investing in as the Fed hands over the printing press to the B of J.

    Here's the Interview link:

    mutualfundobserver.com/discuss/discussion/14835/wealthtrack-q-a-with-jason-trennent#latest

    Finally, an interesting chart compares HJPNX (Hennessey Japan Fund) to the performance of the S&P 500 (SPY) going back to the beginning of the Fed's support. I give Hennessey's managers a lot of credit for keeping this fund's performance up while other Japanese-centric funds have lagged miserably.

    image

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