Emerging Markets-Time to Buy

I have added emerging markets in the performance tab. This is risky but I am willing to jump into the market at these low prices. I believe the worst of the Chinese bear market is over. The Chinese government has been deregulating its regulatory burden on the tech sector. Additionally, the existing rally off the lows is not driven by margin debt. This is a positive sign.
The market should find support throughout this year by expansion of Chinese equities in the indexes constructed by MSCI. This will open up a lot of foreign buying for Chinese equities.

I don’t have any plans to buy European shares at this time. The ECB has announced a new round of TLTRO’s. It lends money to Euro banks and charges them the ECB’s -.4% deposit rate. Put another way, the ECB is paying banks to take loans as long as they lend the funds to Euro corporations. Looking at the data, it seems there is not enough desire for those wanting the loans. The only country looking like a buy in the Euro is the UK, but I am still on the fence.

I still like the US market and tech stocks.

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