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Half Of Emerging Market Stocks Are Now In Bear Territory: The Map
We have, over the past two weeks, spent quite a bit of time documenting the veritable collapse of EM stocks, bonds, and FX in the wake of China’s move to devalue the yuan.
The yuan deval effectively telegraphed Beijing’s concerns about the economy, confirming fears that the situation was worse than the NBR is willing to admit and putting further pressure on commodity prices which are now sitting at their lowest levels of the 21st century.
Now, with EM in turmoil from Brazil to Malaysia, Bloomberg is out with the following map which sums up the carnage by showing just how many EM equity markets are in or closing in on bear market territory.
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Sorry, can't help ya, need to meet my Reg T calls.
Kind of funny how many of the grey areas, like Africa, don't even count, and then there is that other big grey one, the USA
The bottom 90% are seldom directly affected by stock market chaos.
The map shows the 30 largest emerging economies only.
Aussies and Canucks glistening as well.
Maul them down Mr. Bear!
Yeah, the Dow's now in 'Bear Trap' territory.
The vast majority of ZH's especially the veterans here understand fully that there are no more "Bear or Bullish" markets. There's only Fascism & Ponzi.
"If central banks purchase stocks in order to support equity prices, what is the point of having a stock market? The central bank’s ability to create money to support stock prices negates the price discovery function of the stock market."
-Dr. Paul Criag Roberts
"These questions came to mind when we learned that the central bank of Switzerland, the Swiss National Bank, purchased 3,300,000 shares of Apple stock in the first quarter of this year, adding 500,000 shares in the second quarter. Smart money would have been selling, not buying.
It turns out that the Swiss central bank, in addition to its Apple stock, holds very large equity positions, ranging from $250,000,000 to $637,000,000, in numerous US corporations — Exxon Mobil, Microsoft, Google, Johnson & Johnson, General Electric, Procter & Gamble, Verizon, AT&T, Pfizer, Chevron, Merck, Facebook, Pepsico, Coca Cola, Disney, Valeant, IBM, Gilead, Amazon."
-Dr. Paul Craig Roberts
Venezuela not on the list because no one understands the difference between real and nominal numbers anymore (except the ZH sharpies).
The Zimbabwe stock market made billionaires of everyone in it (in Z dollars).
+1000. A superb post as usual
Gotta do something with that negative interest bonanza and the cushions were all full.
Nice info but those dollar amounts are insignificant and don't even add up to a billion $. Yesterday and today alone the FED must have pumped in close to a trillion $ to prop up markets.
What the hell is wrong with Poland. They should be doing as good as Germany. What are they stupid. (disclaimer: just came back from 10 days in Greenpoint)
Too much Bison Piss Wodka
Filtered through sheep turds and muppet entrails.....
Still better than Grey Goose.
Foreign investors movin wealth into a safe zone.
They still perceive it that way.
Like I said, nothing has changed.
Yes, they moving away from EMs into the US, that's the reason for strong dollar relative to EM currencies combination of low commodity prices and pending Fed rate hike. Investors looking for yield. Before, Asia and EM offered higher yields, thus a inflow, but now with Fed pending rate hike, there is an outflow. If the Fed fails to deliver the juice, then I would expect the reverse to happen again.
Print MOAR markets
Socialist Bolivia is still going strong with rapid growth and a stable currency. Why is that?
Myanmar, Sudan, etc etc. Hmmm? How do we compare these "going strong" markets? You can't really can you but they all look OK on this map.
The (socialist as you say) Bolivian Stock Market is said to have really got a boost when they privatized their social security system. That doesn't sound so "socialist"...whaaaaat? And then there is all of this other stuff they privatized in recent yers (http://www.ncpa.org/pub/st221?pg=8). I guess when socialism has run you far enough in to the ground the beach ball pops way up when it's finally dismantled.
Obviously you need to visit the country. You're correct about the social security system being privatized but that was a mistake that they will discover when some large international banks go under. Prosperity there has nothing to do with the stock market. It has to do with the strength of small business and production of many things including coca, natural gas, mining and a strong agricultural sector. Bolivia sits on 60% of known world reserves of lithium although not mined much yet. There is a very strong socialist tendancy in the country coupled with strong belief in small scale capitalism. My wife is Bolivian and I go twice a year.
Ahh, you're flogging a dead horse Lat25, most of the people on this site haven't been out of their State, let alone country, but they know exactly what foreign governments are doing and what they think. I won't name names, but one poster yesterday ( First letter T, last letter L) knows exactly what the CCP are doing and their plans for the future. The fact he probably couldn't point to China on a ma means nothing.
I used to come here for some economic news, comedic postings and intelligent discussions. Now I come here for the shits and giggles, you may aswell go visit Dave Hodges site (Apparently there is 10,000 Chinese troops on the Mexican border - LOL)
The fact that you've been there and seen it means nothing anymore.
Michael Bloomberg for President 2016.
And now you can see how well your assumptions played out, eh?
Damn straight bitch.
Snake, I thought you were dead.
I really don't deny anything you are saying about potential. I don't know if privatizing the social security is a mistake or not...they are ponzi schemes either way you slice them eventually. But I wasn't the one who said stock markets mean crap...you were when you chimed in saying Bolivia's was doing just fine (implying that it was because it is I guess, kind of socialist (now that I see you backtracking).
And then I had to chuckle a little. You wrote, "Bolivia sits on 60% of known world reserves of lithium although not mined much yet." Why is that? I wouldn't blame the reason entirely on socialism's nature to sap incentive out of every society it's ever existed in during the modern era simply because Bolivia's had such a chaotic political system over the last 50 years it's also a byproduct of that of course.
But I just don't see how your first claim (implied) stands up with all the rest of what you said. I travel to S. Am frequently as well. The picture you see for me here is actually an alley/street in Bogota where I've been four times in the last year. Colombia, where my wife is from, has similar historical chaos marking it's limited success recently, but still there are many successes to point to there and they aren't anywhere near socialist (not even as much as the US).
Lithium has not been mined because it mostly sits in Salar de Uyuni which is a sacred site to native Bolivians who now control the government. Nothing to do with socialism. Bolivia has had a turbulent past as you say but today is MUCH different than Colombia which I have traveled too also. What I am implying is that it appears to me that Bolivia has come up with a different model of development which follows both socialist and capitalist ideas and it seems to be working well and the population is buying into it for the most part. They strongly support small business and have actually thrown out big corporations like McDs.
That I can get behind. Hell, all you have to do is not give benefits to large corporations and small business will take them out on their own in my opinion. The world is decentralizing and small is big...as technology got cheaper and smaller the flexibility of small businesses make them more efficient despite all the old benefits economy of scale used to provide.
I would love to travel to Bolivia too...I'd just love to tour all around S Am (that's a trip we are planning actually) because in all honesty, I think they have some macro advantages economically going forward that blow the "west" away. Younger populations, less debt overall, freer economies (it's funny in a way because I bet Bolivia overall is more of a free economy than the US...what's your take?). Resources abound and despite the rabid xenophobic claims in the crumbling US political establishment rhetoric, their not anywhere close to "overpopulated" with barely more in all of S Am and C Am than the US total by itself...and the US isn't having an overpopulation issue.
Agreed about the overall freer economy and low population density. It is attractive and when N. America blows apart it'll be a much better place to live IMHO. We were in Argentina a couple of months ago and their version of socialism is pretty repressive even though it's a beautiful country with great people.
I work with a woman from Argentina...she's constantly upset about what has happened to that country. In the end, whatever we want to call a system, I don't think searching the past is going to provide the best models (a historian said ironically) going forward. Not in any "total" way I mean. And why we all feel like it's all or nothing when it comes to this stuff, I'm not sure. The difference, and I think you nailed it there, is whether or not the system (whatever the people want to call it) is repressive or not and to what degrees concerning what things is what matters regarding productivity and the ability to generate wealth. Without production there is nothing to share or spread around or whatever. Now I am a firm believer that people will do a better job individually (and without forced coercion) in doing that than a state (who is predicated on it's ability to use force)...but that goes back to the point about "repression or not" anyway.
Wake me up when "markets" in countries actually reflect their long term wealth or viability.
The USG has fucked America - time to hang all the SOB's
china and russia in a bear market...china=production....russia=commodities....the paper pushers really fucked them over
Hey Tyler, If I wanted to know what 'Bloomberg' thought about things I'd fuckin log onto their site and give them the hits.
Is the next post on ZH going to be headlined;
JOE PHILBIN SAYS EVERY TEAM IN THE LEAGUE IS SHIT APART FROM US.
Great Post, that really puts things into perspective...
U.S.A U.S.A U.S.A and Zambia.
I knew Greece was back to emerging market status, but I ignored that for South Korea !
Markets rising: more idiots than stocks.
Markets falling: more stocks than idiots.
(André Kostolany)
Oh, look, over there, the Emerging Markets!
Seems to work.
If they're losing, then they're not emerging markets.
They're third world markets.
#3 is not #1.