Since 2007, Emerging markets (EEM) have under performed the broad market by nearly 80%. Below compares the performance of the S&P 500 to Emerging markets ETF EEM, since the highs back in 2007.
CLICK ON CHART TO ENLARGE
Corporate profits are rolling over again.
Two years ago, corporations posted their first year negative profit growth since the Great Crisis. We had a bounce from those depressed levels, which suckered a lot of investors into believing that fundamentals were improving.
That period is now ended. Year over year profits are rolling over HARD.
Why does this matter? After all, corporate profits have rolled over several times in the last few years… and the markets kept blasting off to new highs.
Tuesday's session started off on the back foot, with the Euro first sliding on Draghi's dovish comments before Europarliament on Monday where he signaled no imminent change to ECB’s forward guidance coupled with a Bild report late on Monday according to which Greece was prepared to forego its next debt payment if not relief is offered by creditors, pushing European stocks lower as much as -0.6%. However the initial weakness reversed after Greece's Tzanakopoulos denied the Bild report, sending the Euro and European bank stocks higher from session lows.
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The Hundred Billion Dollar Man - Jeff Nielson
Written by Jeff Nielson (CLICK HERE FOR ORIGINAL)
U.S. markets are closed for the Memorial Day holiday, and with UK and Chinese markets also closed for various holidays, it has been a quiet start to the week, with S&P futures essentially unchanged, trading at 2,415, up 0.06%, a new all time high.