Two Ways To Play: How Low Will BRIC Nations Go?
Strengthen your portfolio in good times and bad.
BRIC Stocks Cheap, Scary
Even after a record 20% gain in emerging-market stocks last week, some of the world's biggest money managers think tougher times lie ahead for the BRIC nations (Brazil, Russia, India and China).
The global credit crunch has hit securities in these countries especially hard. Stocks in China and India, for example, have plunged over 70%. But even with prices this good, managers like Franz Enzel of Paris-based Aza, which oversees $655 billion, are hesitant to jump in. "We have seen the first dominos to fall with Hungary and Turkey," he said. "We might see other shoes to drop."
See Toddo's thoughts on the global markets in his recent column, Seduction, Corruption, and Redemption.
From the Bull Pen: For those that believe the emerging markets remain oversold despite the record rally, consider the China ETF (FXI). Is the stock building support near $25? Sell stops can be set below $24.
From the Bear Cave: Those bearish can consider the volatile Ultrashort Emerging Markets ETF (EEV). Bears can set an initial position here with a sell stop below $80.
Quick Check Around the World
Asian trading closed with the Hang Seng 2.69%, Sensex 5.62%, Taiwan 2.55% and Shanghai -0.52%.
Glancing towards Europe, we see the CAC 0.20% DAX 0.63%, FTSE 0.22%,
As of 8:15 a.m. EST, S&P Futures are trading +1.6 to 969, and Nasdaq futures are +0.5 to 1337.
A Look At Commodities
Crude oil is trading -0.63 to 67.18. Gold is +16.70 to 734.90. Silver is +0.235 to 9.965 and copper is +3.350 to 187.75.
The dollar index is -0.346 to 85.287.
On the Radar
10:00 ISM Manufacturing
10:00 ISM Prices Paid
10:00 Construction Spending MOM
Click here for the full trading radar.
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