May 9. Emerging markets, stocks vs bonds
Below is chart of EEM in amber, the Emerging Mkt etf, vs EMB in white, the Emerging BOND etf. I have no idea what the composition is of each of these; I only just learned there WAS an emerging bond fund. Obviously, the Argentine bonds are exerting a downward influence in the bond etf… not much of a surprise there.
Just sort of interesting to see the divergence, and given that US corporates have been borrowing in order to fund stock buybacks (thus diluting balance sheets) it might be worth keeping an eye on this chart. Will credit concerns pull stocks down?
