Arguably one of the very best proxies for tracking what is happening in emerging markets is the ETF traded on the NYSE called the iShares MSCI Emerging Markets Index (EEM). A distinct advantage in using the US Dollar version is its sheer trading volume: on average over the last 3 months it has traded nearly 10m shares every day. Assets in the fund are around $14bn. The five year picture shows the relentless growth in the fund, as well as the fact that it has just broken out again into new highs.
Anecdotal evidence abound for the powerful growth winds blowing across the globe originating usually in China, or one of the other major emerging countries. We heard today there are 100 very large ships anchored off Australia awaiting their next shipment of iron ore and other commodities to be sent to China. This is out of a total world fleet of these mega ships of 700. We may be some way of that slowdown…
