Chart of the Week: Ratio of Emerging Markets to Europe/Asia

May 24, 2006 11:00am by

Mike Panzner observes that after nearly two years of outperformance, the MSCI Emerging markets index has broken a key uptrend relative to MSCI EAFE. Is the shift away
from emerging markets and into more mature economies reflective of where growth
is heading, or does it reveal a loss of risk appetite? We suspect the
latter. (Forbes disagrees).


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Ratio of Emerging Markets to Europe/Asia
Emerg_eafe

Source: Mike Panzner

Note: EAFE stands for
"Europe, Australia, Far East," and the MSCI EAFE iShares ETF is based on
EAFE Index. It covers stocks from much of the globe, with the fund holding
nearly 800 non-U.S. securities.

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Quote of the Day

“It isn’t as important to buy as cheaply as
possible as it is to buy at the right time”

–Jesse Livermore

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What's been said:

Discussions found on the web:
  1. Jay Morrison commented on May 24

    Just a few add-ons:

    The MSCI EAFE index has 1140 securities at last count and the ticker is EFA. Also, the index only invests in international developed markets.

    Keep up the great work Barry!

  2. Bob A commented on May 24

    and the three year trendline on the Russel 2000 and VLE is nearing the point of truth or dare

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