January 19, 2008
We've had it bad and it seems that the rest of the world is following. With all the talk about the emerging markets decoupling from what happens in the U.S. no longer affecting them, someone forgot to tell their markets. Their behavior is running in parallel with our own. The old saying - "When the U.S. sneezes, the rest of the world catches a cold" seems to still be true.
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10
Number of consecutive days Australia's benchmark S&P/ASX 200 stock index has fallen – the longest losing streak since data tracking began in 1992.
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EASTERN EUROPE'S BULL MARKET ENDS
For the past several years, we've watched with interest the bull market in Eastern European stocks... chiefly through the huge uptrend in the iShares Austria (EWO).
Although this region gets little attention in the mainstream press, its "flat tax" policies are light years ahead of horrendous codes in Western Europe and the U.S... and producing a much faster rate of growth than the likes of France, Spain, and Italy.
With a heavy weighting in banks, this ETF is the easiest way to play the financing of Eastern European growth. Since taking off in early 2003, EWO was one of the best regional plays you could possibly own... rising nearly 400% to its high last year. The "shoot first, ask questions later" mood of investors right now has changed all that. EWO hit a new 52-week low this week.
As our Stat of the Week demonstrates, Australian stocks, which represent raw materials, are being sold indiscriminately. Austrian stocks, which represent banking, are being sold indiscriminately. The message from the market: "I don't care what the hell you do to make money, I'm selling."– Brian Hunt |
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