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Max Headroom's avatar

Interesting chart, for sure.

It should be pointed out, however, that this is largely influenced by the US-dollar exchange rate. It's one reason why I don't like MSCI indices because they all convert LC stock prices into $ and hence always include the $ chart vs the respective LCU.

Doesn't invalidate your points; I just want to put it in perspective that it is largely a function and a mirror of the dollar topping and likely goig into a long term downtrend

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Callum Thomas's avatar

Thanks, firstly this is my own index, and I can share the cap-weighted + LC versions if interested, but the reality is most people will be looking at this from an investing standpoint as denominated in US$.

Second, I like the FX (EMFX is cheap and technicals improving) and I always like it when the FX aligns with the equity value case -- so yes very important points you raise.

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Trader Nate's avatar

Great chart for EM markets!

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Callum Thomas's avatar

indeed, but I think many will miss this one because no one really looks at EM in equal-weighted terms, and sometimes you can get onto some interesting market signals/conclusions from looking at things others don't...

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Trader Nate's avatar

💯 great stuff

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