Can Emerging Markets outperform the American Markets?

Today’s Daily Byte

What a start to this year it has been! The market has been relentlessly trending downward, with no signs of slowing down. In fact, today's early drop was met with a sharp bounce in the second hour, giving us some hope. However, despite these short-term reversals, the market continued its downward trajectory. It seems the bottom is still elusive, and we're not out of the woods just yet.

Reading Time : 4 Minutes

Can Emerging Markets outperform the American Markets?

The performance ratio between the MSCI Emerging Markets Index and the S&P 500 Total Return Index offers a fascinating look at how these two segments of the global market have performed over the last 35 years. This ratio chart, highlighted by Charlie Bilello, reveals four distinct phases where either emerging markets or the US market took the lead. With the current ratio at record lows, there’s growing optimism that the tide may soon turn in favor of emerging markets.... . . . .

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The looming concentration risk

The S&P 500 is often celebrated as the most reliable barometer of the US and global economy. However, the growing concentration of performance in a small subset of stocks within the index raises significant concerns. Data from the Kobeissi Letter highlights a troubling trend: the percentage of S&P 500 stocks outperforming the index is at its lowest level in over two decades, comparable to the late 1990s and early 2000s—a period that ended in the infamous Dotcom crash.. . . . .

Reading Time : 3 Minutes