Buy Emerging Stock Markets Or U.S. Stocks For 2019?

According to our emerging stock markets forecast 2019 we identified the current price levels as the make-or-break level. In other words any sustained push higher or lower would result in a confirmed breakout (very bullish) or confirmed breakdown (neutral to bearish). In this article we present a different perspective as we are waiting for the market to confirm whether it recommends to buy emerging stock markets for 2019.

Let’s start with a quick update on how emerging stock markets are doing at present time.

Smart investors buy emerging stock markets for 2019

As per Forbes, a good read published yesterday, it seems that emerging stock markets are getting a bid. Smart investors believe emerging stock markets are a buy for 2019, visibly.

It’s already happening. Don’t let the recent sell-off scare you: The smart money is moving out of the U.S. and going abroad. The risk-off cash position is due to the Fed. The rest is a symptom of a red-hot U.S. stock market that got too expensive for its own good, and right at a time when interest rates are rising and tight labor markets have peaked. If the Fed goes dovish next year, investors expect a lot of that cash to go into emerging markets.

It continues: “Net inflows since November 1 for all emerging market equity funds are $8.34 billion as of December 5, according to EPFR Global, a Cambridge, Massachusetts-based fund-tracking firm. Even China, which suffers from negative sentiment, saw net equity inflows of $3.49 billion over that period while flows into U.S. equity funds saw outflows of $2.9 billion.

No surprise they pointed out that China’s stock market for 2019 is cheap because of the ‘trade war’ fears, as well as South Korea, Russia, Turkey and Argentina.

Buy emerging stock markets or U.S. stocks for 2019

We were triggered by this quote in the Forbes article to look into the relative strength of emerging stock markets vs U.S. stocks.

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