Strategist Forecasts Market Resurgence For China, Other Emerging Economies

Friday, September 02, 2011 08:15
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Strategist Forecasts Market Resurgence For China, Other Emerging Economies

Tags: China | emerging markets | ETFs | stocks | world economy

After lagging U.S. equities the past two years, emerging markets appear likely to stage a comeback, led by China.

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The price ratio of the iShares FTSE China 25 Index Fund relative to the SPDR Dow Jones Industrial Average ETF appears to be bottoming out, according to Michael Gayed, chief investment strategist at Pension Partners LLC.


“There is a decent cushion priced into China now relative to the U.S.,” Gayed writes in ETF Trends.


Funds have been flowing out of the China ETF this year, and “this alone makes the outperformance argument very real if one takes a contrarian standpoint,” he added.

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