Emerging markets are the growth engines of the world?  Heard this pitch for years? Could this pitch be the reason that 2 of the 4 largest ETF’s in the world are Emerging markets ETF’s, despite relative weak performance compared to the S&P 500? I’m not saying it won’t happen…it just hasn’t happened over the past few years!

The above performance chart compares the two largest ETF’s in the U.S. reflecting a 30% performance spread between SPY and VWO over the past 5 years.

Well that is the past!  What is more important of a question I have right now is… can the S&P 500 pull leading Emerging/Asian markets higher? Check out the patterns and what is happening in two of the four largest ETF in the U.S. right now.


This 4-pack reflects attempts to break support lines dating back to the 2008 lows in VWO and EEM on the left and China ETF (FXI) and the Hang Seng index are pushing big time on similar support lines.

Humbly I don’t know who is driving the train from a leadership/growth role!  I do have a gut feeling that if EEM, VWO, FXI and the Hang Seng index break the support levels in the above 4-pack they sure could impact the prices of the major U.S. stock index’s!!!


How The Recent Decline In Stocks Looks "Eerily" Like Major Bear Markets Of The Past