*Illustration of top 10 best & worst performing equity indices out of 95 traded stock markets tracked by Bloomberg worldwide
Not too long ago, elections in Europe or debt ceiling worries or spending sequestration made many investors’ hearts skipped a beat. But hardly anymore these days as it seems that more and more money piled into stock markets like Laos, Vietnam, Dubai & Ghana that many will not touch with a 10 foot pole just 6 months ago. These countries together with Nigeria, Kazakhstan, Greece, Bulgaria, Philippines & Argentina just rounded off the top 10 best performing markets where you need to be about above 15% year-to-date to qualify .. which is indeed a tall order for any other year even those with horns that we called bull markets!
And out of the 95 traded global stock markets monitored by Bloomberg, only 10 are negative for the year with Venezuela right at the bottom (*no surprises with the currency devaluation). Even then, the losses of the bottom 10 are hardly negative enough to send any chills down any investor’s spine.
Am I getting old and less gung-ho but I get nervous when I see the top performing markets dominated by countries that still have inflationary depreciation of its currency (*like Vietnam where the Dong lost 50% of its value in the last 5 years together with the Argentinian Peso with a 67% loss in the same period) Coupled with hot money flowing to them where I bet you still cannot watch the latest episode of ”The Walking Dead” T.V. series yet and you definitely need more than a week to get in and out of any reasonable position.
End-February 2013 is the start of the spending sequestration in the U.S. and before that will be Italian elections this weekend 24-25 February. Looks like every equity fund manager is a hero especially those betting on Laos, hands up … and you can be sure it ain’t a Hmong tribesman!
*Asianmacro is a beach bum managing his own wealth. Besides deciding what to have for lunch (or hitting the gym sometimes), he is mostly found listening to loud music while trading and investing for himself. While every care has been taken in preparing the information in and/or materials, such information and materials are provided “as is” without warranty of any kind, either express or implied. In particular, no warranty regarding accuracy or fitness for a purpose is given in connection with such information and materials. The opinions expressed do not constitute investment advice and independent advice should be sought where appropriate. In no event will Asianmacro be liable to you for any direct or indirect or any other damages of any kind arising from or in connection with your reliance on any information in and/or materials attached herewith. Asianmacro may already have or intend to have a trading or investment position in the financial instruments or products referred to in this communication. This is not intended as an offer or solicitation for the purchase or sale of any financial instrument and Asianmacro may also have interests different from or adverse to your interests.