Banking stocks are flying higher, tech stocks are recovering, confidence is increasing. It's been solid for the states but is the flight out of EM already over? The weakness we liked could be coming to a crossroads. Can US investors gain enough confidence to put their money to work abroad once again, rather than repatriating it back to their own equity markets? This is bound to happen at some point. This is just a sneak preview of things to come. But for now, it is just that.. A sneak preview but not a sustainable trend. A temporary bounce for EM would not surprise.
This doesn't mean that EUR and GBP bounce. As deepthoughts42 has argued, these remain plagued currencies for the Northern hemisphere summer.
By Chartonomist
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