No doubt everyone who wasn't net-short the market has a smile on his face today.
Today's rally is some welcome news, especially for those companies and countries who have been unfairly sucked down by the "Black Hole" I talked about last week.
Now, I'm not gonna say this is the end of the downside global markets have been experiencing over the past weeks and months. I don't have a crystal ball, and I don't read Tarot. And in a market where everyone's looking for "the answer" I don't want to tell you something I'm not absolutely sure of myself.
Instead, we'll look at some of the best analysis we can and make some educated decisions about what to do next in Taipan Trader.
In the mean time, let's take a look at what this recent upswing has done to emerging markets.
Both currencies and markets are up in emerging markets, and that's really good news. Of course, after the thumping they've had, this bounce is just a drop in the bucket of what needs to happen to get these markets back on track.
So are we ready to call emerging markets the Comeback Kid?
Hang Seng: up 10.24%
Bombay SE: up 7.64%
Bovespa: up 13.27%
Tel Aviv: up 4.62%
IPSA: up 12.50%
PX: up 10.47%
I think we should be cautiously optimistic here. That means you don't jump with both feet into this rally, but you should probably dip your toe in with some good solid companies. Companies that are showing a profit, or whose assets are worth more than the market cap right now, due to severe market fluctuations.
But you should also keep ahold of your "hedge" or safety positions, like gold and other hard assets.
While we don't know what will happen tomorrow, I think this might just be the beginning of the corner, particularly for emerging markets.
