Emerging Markets Emerge as a Winner

Igor Manukhov - Jan 20, 2023

It appears that relative strength is shifting to outside of North America. Emerging markets look to turn around.

I noted a couple of weeks ago that for the first time in a while, relative strength started to shift away from US towards other jurisdictions. Emerging markets had a major turning point back in October of last year. They now appear to be outperforming the Canadian (Red line on the top panel) and US market (Green line in the middle panel). There also seems to be a change in the actual trend of emerging markets (Black line on the bottom). Time will tell whether this materializes into a sustained long term trend, however we have started to allocate funds towards emerging markets to participate in a possible trend reversal.