Emerging Markets Index EPS vs S&P 500 Index EPS

Sep 01, 2013 in Earnings | Emerging Markets

 

Emerging Markets fundamentals as measured by earnings have been very weak.    Will this stay isolated or is it an indicator of weakness that will spill elsewhere?    S&P 500 earnings can be quite resilient to segment weakness -- but stay tuned to see how this plays out as this divergence may also be telling us something:

 

Source: Bloomberg

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Chinese Yuan vs other 'commodity currencies'

Feb 28, 2010 in Currencies | Emerging Markets

The Chinese Yuan is pegged to the US Dollar --- with occasional 'adjustements' or small revisions by the Chinese government.   This chart shows a general, vague idea of what 'may' be the movement of the currency if it were allowed to float.   Both the Australian Dollar (developed market) and the Brazilian Real (emerging market) are considered 'commodity currencies' and are in a way comparable to China.

To see other timeframes for this relationship,  type CYB BZF and FXA into the text boxes and push the 'Compare Returns' button here:

http://www.etfreplay.com/charts.aspx

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Using ETFreplays data visualization tools to understand financial relationships -- EEM Focus

Feb 06, 2010 in Emerging Markets

Options market makers use daily volatility as their measure of how to handle securities with different sensitivities to broad events and market moves.   Getting a basic understanding of volatility can be quite useful when thinking about how to weight your holdings.    If you expect high returns, then high volatility is fine  --  you are expecting to be paid for the risk.   A major problem would be owning securities that are very volatile but you do not expect them to offer high returns.  

The Emerging Markets Index (EEM) has been more volatile from a daily standard deviation perspective every month for the last few years.   There has been no change in this in 2010.    Looking at the returns by month as in the first chart shows how this YTD period is hardly an unexpected outcome.

Our layout at ETFreplay.com has been designed to offer visual representation of data.   Financial relationships are much easier to understand with a well laid-out chart than a set of numbers in a data table.

 

 

To vary the timeframe of the above analysis and gain deeper understanding of this relationship, visit: ETF Charts

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