Is The Stock Correction Over?
Cam Hui | Jun 17, 2013 03:25AM ET
The recent bout of volatility in the capital markets owes much to the turmoil seen in the emerging markets. Both emerging market bonds and equities have recently been hammered on the basis of:
- Slower growth in China; and
- The whispers of Fed "tapering", which caused an unwind of the risk trade in EM bond and equities.
By the end of the week, it appeared that the storm that was battering the markets was abating. Breadth indicators had reached oversold levels and fear levels were starting to recede. Consider this chart of the NYSE New Highs - New Lows, which fell to levels consistent with the end of past minor corrections and saw a bounce late in the week.
Bill Luby at Qwest Investment Fund Management Ltd . ("Qwest"). This article is prepared by Mr. Hui as an outside business activity. As such, Qwest does not review or approve materials presented herein. The opinions and any recommendations expressed in this blog are those of the author and do not reflect the opinions or recommendations of Qwest.
None of the information or opinions expressed in this blog constitutes a solicitation for the purchase or sale of any security or other instrument. Nothing in this article constitutes investment advice and any recommendations that may be contained herein have not been based upon a consideration of the investment objectives, financial situation or particular needs of any specific recipient. Any purchase or sale activity in any securities or other instrument should be based upon your own analysis and conclusions. Past performance is not indicative of future results. Either Qwest or Mr. Hui may hold or control long or short positions in the securities or instruments mentioned.
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