Emerging Shoots

June is bustin’ out all over. Especially in emerging markets.

Recent attitudes have been positively giddy. Commodity prices have helped stock indices from Singapore to Turkey to Brazil. An composite of these markets has risen over 70% since March.

Clearly, the shock resulting from last year’s credit crunch is fading. In May, Singapore’s exports rebounded 5%; Hong Kong’s unemployment rate was unchanged; and IMF support has reduced the risk of a cash crisis in Eastern Europe But some clouds are on the horizon. All the stimulus has given governments little room to maneuver should the economy turn down further. Moreover, rising energy prices could stress large importers like China and India. Money spent on oil can’t fund other stuff.

No tree grows straight to heaven. While we’re constructive on how emerging markets will perform, investors need to hang on. The ride could get bumpy from here.

Douglas R. Tengdin, CFA
Chief Investment Officer
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By |2014-09-04T18:41:47+00:00June 22nd, 2009|Global Market Update|0 Comments

About the Author:

Mr. Tengdin is the Chief Investment Officer at Charter Trust Company and author of “The Global Market Update”. The audio version of each post can be heard on radio stations throughout New England every weekday. Mr. Tengdin graduated from Dartmouth College, Magna Cum Laude. He received his Master of Arts from Trinity Divinity School, Magna Cum Laude and received his Chartered Financial Analyst (CFA) designation in 1992. Mr. Tengdin has been managing investment portfolios for over 30 years, working for Bank of Boston, State Street Global Advisors, Citibank – Tunisia, and Banknorth Group. Throughout his career, Mr. Tengdin has emphasized helping clients manage their financial risks in difficult environments where they can profit from investing in diverse assets in diverse settings. - Leave a comment if you have any questions—I read them all! - And Follow me on Twitter @GlobalMarketUpd

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