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PREMX / Issue?

edited June 2022 in Fund Discussions
Formerly great fund. Once popular here.

Off -19% YTD … -21% 1 year. Chart resembles wet spaghetti. Seemed to turn down fast.

Was this Russia - or what - that caused such a drastic turn?

Their unhedged PRELX seems to have managed to outperform, which makes no sense.

Comments

  • edited June 2022
    I compared PREMX and PRELX to ETFs EMB and LEMB. Shown are 1-yr charts - Price funds held up better in 2021 but are doing worse YTD. Things have been difficult and bad for almost everything. Last week even energy and utilities got taken out and shot.
    https://stockcharts.com/h-perf/ui?s=PREMX&compare=EMB,LEMB,PRELX&id=p77876593522
  • edited June 2022
    This year USD has been strong against many currencies. Also flight to safety I stress times also account for that. Learned that lesson from 2008 - EM debts fall like equity! In addition, those EM debts with sizable Russian exposure are added to their downfall.

    Not meant to hijack @hank’s tread,
    Last week even energy and utilities got taken out and shot.
    Any reasoning behind that? Notice that energy sector pulled back over at least 2X the weekly loss of that of S&P500.

  • There were rumors on Twitter that Europeans were putting pressure on Ukraine to reach some negotiated settlement and energy got hit - XLE fell by 17-18% in a WEEK. But some pointed out that if these rumors were true, the rest of the market (i.e. non-energy) should rally, but that didn't happen.
    Utilities had been strong in the face of rising rates but people were piling into it. That reversed last week and utilities fell 9-10% last WEEK.
  • edited June 2022
    PRELX isn’t hedged (against currency risk) as PREMX is.. So the strength of the Dollar should have whacked it even harder. PREMX was always the mild mannered sister to PRELX.
  • Owned PREMX years ago, glad I'm not in anymore. I often look at it for fun and noticed what @hank has noticed. I compare(d) it to FNMIX--- which always did a bit better, back when. But FNMIX is in the crapper, too.
  • Learned my 2008 lesson and hold NO risky debt this year.

    France and former ambassador, Henry Kissinger, want Ukraine to negotiate a deal; basically give up part of eastern region. Ukraine refused as long they get arm support from the west.

    On the energy front it gets very complicated now that majority of EU are exiting Russian gas supply and oil is next. Where do the Russian oil and gas go? Saw that XLE got hit considerably last week. On the demand side, the number one oil importer, China, is still have COVID lockdown in several large cities. Some are slowly opening up.
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