Expect a Downturn in EM If you Expect a Downturn in the USIts not quite a great idea to invest in EM if one is expecting a downturn as EM will be significantly hit from drying up liquidity via outward capital flows and lower investment. Happened in 2008 with the liquidity crisis and again in 2011 with the EU sovereign debt crisis. We can see this relationship between developed markets and emerging markets through a correlation coefficient between the S&P 500 and the most liquid emerging markets ETF in the world EM. Moreover, EM is vulnerable to a Chinese financial crisis as well if the Chinese can't figure out how to lower their debt levels which they really havn't yet. Either way, I would avoid EM at these price levels.
EM trade ideas
EmakQualche settimana fa EMAK ha rotto al ribasso sotto 1,5€.
Questo scivolone, però, si è rivelato un FALSO break down.
La seguente ripresa sopra 1,5€ la interpreto come un nuovo
segnale rialzista.
Adesso sto sfruttando il PULL BACK in corso nelle ultime tre
sedute: poco fa ho aperto una posizione a 1,62€ per un
trading di breve periodo.