A stronger dollar and rising interest rates have been headwinds for developing market equities.
However, there are some encouraging signs this week that emerging market ETFs could start making up some lost ground against U.S. stocks.
For example, EEM is on track for a weekly gain of 4% while SPY is up 1.3%. [Anecdotal Evidence of a Near-Term Emerging Markets Bounce]
The chart below shows the relative performance of the emerging market ETF versus the S&P 500 with this week’s bounce.
Full disclosure: Tom Lydon’s clients own SPY and EEM.