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Emerging Markets off to a Bad Start

There’s only been five days of trading so far in 2014, but for emerging market equities and for China, the year has gotten off to a very bad start.

The latest declines in both the iShares MSCI Emerging Market ETF (EEM) and the iShares FTSE China 25 Index (FXI) have sent these respective indices below their long-term, 200-day moving averages. This technical development doesn’t augur well for the trend in these sectors, at least in the short term.

EEM is down nearly 5% so far in the young year and, despite a rebound in today’s trade, FXI also is down about 5%. While these sectors are dealing with a variety of different challenges, there is a common thread to the headwinds, and that thread is debt.

Read more about why 2014 has started slowly for China and emerging markets at Eagle Daily Investor.

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archive

Emerging Markets off to a Bad Start

There‚??s only been five days of trading so far in 2014, but for emerging market equities and for China, the year has gotten off to a very bad start.

There‚??s only been five days of trading so far in 2014, but for emerging market equities and for China, the year has gotten off to a very bad start.

The latest declines in both the iShares MSCI Emerging Market ETF (EEM) and the iShares FTSE China 25 Index (FXI) have sent these respective indices below their long-term, 200-day moving averages. This technical development doesn‚??t augur well for the trend in these sectors, at least in the short term.

EEM is down nearly 5% so far in the young year and, despite a rebound in today‚??s trade, FXI also is down about 5%. While these sectors are dealing with a variety of different challenges, there is a common thread to the headwinds, and that thread is debt.

Read more about why 2014 has started slowly for China and emerging markets at Eagle Daily Investor.

Newsletter Signup.

Sign up to the Human Events newsletter

Written By

Doug Fabian is the editor of Successful Investing and High Monthly Income, and is the host of the syndicated radio show, "Doug Fabian's Wealth Strategies." Taking over the reigns from his dad, Dick Fabian, back in 1992, Doug has continued to uphold the reputation of the newsletter as the #1 risk-adjusted market timer as ranked by Hulbert‚??s Investment Digest. For more than 30 years, Successful Investing (formerly the Telephone Switch Newsletter) has produced double-digit annual gains. Doug has become known for his expert knowledge and timely use of innovative tools like Exchange Traded Funds, bear funds and Enhanced Index funds to profit in any market climate.

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