EMERGING MARKET CONCERNS

Remember when the big diving got started in indices in January the argument was the emerging market fundamental problems. The market recovered yesterday in fast mood after the great tumble.

• Dow 15,629, +189, 1.22% 
• Nasdaq 4,057, +45, 1.13% 
• S&P 500 1,773, +21, 1.22% 

The question is the emerging markets are doing better? Shucks. It was only one kind of fear which was overestimated, but some countries is true are still struggling. We don’t have to watch Brazil, Argentina, South Africa – but I know the investors are fixed on those. Everybody knows they have problems. So no worries if some bad news comes from those countries, it is business as usual. Nobody was speaking at the end of 2013 about the Turkish lira or Argentina.

But if we have some bad news from other emerging markets like China, South Korea we have to be concerned. If they start to crumble that could be a bad scenario.

The flu of fear from recession is still with us. But on the other the last couple weeks correction might be healthy either. The fear is still with us and honestly I like the fears. I am scared when no one seems to be worried about anything. We are always worried about unforeseen future.

So when the fear occurs on the market stay calm, don’t buy, be watchful until the things cools down and put money again if the markets going up again. Our forecast for this year is still bullish and expecting at least 8-9% gain in SP500, maybe will hit the 2.000.

The BFM Assets Team.