Emerging markets were much weaker than the S&P 500 from 2011 to 2016, underperforming the S&P by more than 60%. Over the past 10-months, Emerging markets (EEM) have been much stronger than the S&P 500. Below highlights the strength of EEM over SPY the past year.
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In a continuation of trading patterns observed over the previous two days, on Thursday the global bond rout deepened in the aftermath of the release of President Trump’s tax-cut plan, Janet Yellen's recent hawkish comments and renewed optimism over the health of the U.S. economy.
Today in Small Caps...
SPOTTED: Chasing the $RUT pic.twitter.com/aXwW7pfHG2
— Sven Henrich (@NorthmanTrader) September 27, 2017
Small Caps exploded over 2% higher - the biggest gain since the election - on Trump Tax hype... (we note that marketd di roll over a little once Trump began speaking)
(NOTE - today was the biggest short-squeeze in 2 months)
With the Fed finally admitting it is confused by the "mystery" of inflation, it has also become painfully clear how perplexed it is by the biggest asset bubble in history that the Fed and its central bank peers have blown. But don't call it a humorless bubble.
S&P futures are set for a higher open (+ 0.1%) despite the expected hit to the Dow from Nike which is down over 3% on unexpectedly poor revenue growth, as European stocks gain while Asian shares dropped. Like yesterday when the big story was the jump in the USD ahead of Yellen's (rather hawkish) speech, so today the greenback's levitation has continued, this time propelled by today's unveiling of Trump's tax plan.