The Bond markets are one of the main focal points of our analysis. Financial market trends begin and end in the money markets. We spend condsiderable time reviewing emerging market and US corporate debt. These are particularly sensitive to investors propensity for risk, and as such, useful indicators for equities.
We’ve seen some fairly choppy trading over the last month, and one may now be thinking that investor sentiment has swung 180 degrees in this time. In this time we’ve gone from multi-week highs in numerous markets to testing, and in some case breaching, multi-week lows. We’ve included some longer term graphs (2 years), which puts the recent downturn in some perspective.
Firstly lets look at the ETF EMB. This attempts to map the performance of the JPMorgan EMBI Global Core Index, and holds liquid debt instruments in emerging market countries.
