EEM: Avoid, It's A Value Trap
The iShares MSCI Emerging Markets ETF is potentially a value trap; thus, a low P/E ratio is not a reason to buy. The global macro is not supportive of the EEM ETF either, the Fed turned hawkish, the U.S. is appreciating, and the Trump administration is likely to accelerate the process of deglobalization. In addition, EEM is heavily exposed to China and Taiwan. Thus, the geopolitical risk is too high.
Final Trade: EEM, IWM, NCNO, META
The final trades of the day with CNBC's Melissa Lee and the Fast Money traders.
EEM: This Is Why Emerging Markets Are Promising
The U.S. share of the MSCI World Index is at a record high, indicating the potential for better returns in undervalued markets. Warren Buffett's strategy of accumulating cash during high market valuations supports the thesis of seeking returns in other markets. Emerging markets benefit from U.S. interest rate cut cycles and offer a discounted P/E ratio, providing a margin of safety.
The Big 3: EEM, WFC, SBUX
Ahead of the Thanksgiving holiday, Don Kaufman fills up his plate with a few example options trading ideas in the iShares Emerging Markets ETF (EEM), Wells Fargo (WFC) and Starbucks (SBUX). Rick Ducat provides technical analysis on these products to see how the charts stack up against key indicators.
EEM: It's Getting Worse
iShares MSCI Emerging Markets ETF has consistently underperformed due to long-term headwinds, including a strong US dollar and high US yields. EEM's heavy weighting in Chinese stocks makes it vulnerable to US protectionist policies. The fund's low valuation and exposure to technology are attractive, but the current economic and political backdrop suggests further underperformance.
Trade Tracker: Bill Baruch buys the EEM and Amer Sports
Bill Baruch, Founder & President Blue Line Capital, joins CNBC's “Halftime Report” to explain why he's buying the EEM and Amer Sports
Record Inflows into Emerging Markets with Focus on China and Semiconductor Sector
Recent data from Bank of America indicates a significant influx of $155 billion into global emerging market equity funds, marking the second-highest in history. Notably, China saw a record $139 billion inflow during the period, positioning it as a major attraction for foreign investors.
Record Inflows to Emerging Market Funds Highlighted by Robust Investment in China
Recent data from EPFR Global reveals that global emerging market equity funds saw an impressive $15.5 billion inflow, marking the second-highest on record. This substantial investment included $13.9 billion directed towards the Chinese stock market, achieving a historic second-highest inflow as well.
This incredible statistic shows just how broad the China rally was
The Shanghai Composite Index surged 8% Monday to stretch September's gain to 17%, marking the best rally in 16 years.
Emerging markets expert David Riedel suggests caution on China's market bounce
David Riedel, Riedel Research, joins 'Fast Money' to talk investing in China, tensions in the South China Sea, and more.
China ETFs set for best week on record after Beijing fires policy ‘bazooka' to boost economy. Is it time to jump in?
China ETFs have surged on the back of a blitz of stimulus measures by the country's government to revive the world's second-largest economy.
Top 3 Emerging Market ETFs to Watch as the U.S. Dollar Weakens
As U.S. interest rates remain elevated and the dollar continues its strong run for much of 2024, emerging market equities have still delivered impressive performances. While trailing behind the S&P 500, the iShares MSCI Emerging Markets ETF NYSE: EEM has climbed 5.7% year-to-date.
