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I like uncle Barry's work. Assuming he's correct here, how long must EM investors wait for the tide to turn and for their holdings to be on the upswing again? Months? years? Are we looking at an EM "lost decade" as with Japan? ...?
"Barry Ritholtz, CEO of online quantitative research firm Fusion IQ and author of the widely read “The Big Picture" blog, recently trimmed back his clients’ exposure to U.S. equities and used the gains to buy positions in unloved markets: Europe and emerging economies."
The chart is from Barron's, and here's a note he added to the link on his site:
"Source: Barron’s. I am long emerging markets so I look for items like this. None of these issues are unknowns, and should therefore already be reflected in price."
This is what I don't understand. Did he publish his initial thought with the hope people would sell EMs, so he could them buy them at cheaper cost, which was his intention all along?
On Yahoo finance today also he is talking up EM. I want him investigated for market manipulation.
Glad for the response, AndyJ. Thank you.... I must be careful---like everyone else--- to guard against "confirmation bias." So, far, though my contrarian instincts, mixed-in with what I've learned here and elsewhere over the years, has me feeling pretty satisfied, and it's encouraging to see what you shared above. My bonds are killing me these days, in terms of share-price, and so my portf. is down, overall. But it can't last forever: simple portfolio turnover should help quite a bit in the months and years to come. In the meantime, dividends are lovely to see posted every month and every quarter, including some of my equity positions, too.
I for one have never heard of Mr. Ritholtz, but then I don't get out much, either. If invetors are truly into re-balancing, it is logical they would be buying emerging market stocks and bonds now. Darned hard to do, I know. Buy low, sell high. Could EMs go lower? Of course, but perhaps DCA would negate some of that risk. It many not be THE time to buy em, but prices are certainly more attractive now than they were a year or so ago.
Comments
"Barry Ritholtz, CEO of online quantitative research firm Fusion IQ and author of the widely read “The Big Picture" blog, recently trimmed back his clients’ exposure to U.S. equities and used the gains to buy positions in unloved markets: Europe and emerging economies."
The chart is from Barron's, and here's a note he added to the link on his site:
"Source: Barron’s. I am long emerging markets so I look for items like this. None of these issues are unknowns, and should therefore already be reflected in price."
On Yahoo finance today also he is talking up EM. I want him investigated for market manipulation.
Harrrummppphhh !!!