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The inset table below documents the seven largest ETF's in the U.S. So far this year, five of the seven are either underperforming the S&P 500 by 10% or more, three of them by more than 25%! These funds total $171 Billion in assets! Three of the top seven are actually underwater YTD! (VWO, GLD & EEM).
Emerging markets YTD are actually sub-merging in price! After hitting a falling resistance line recently, two of the top seven ETF's have fallen hard.
When it comes to the game show To Tell the Truth, should we believe the message from the strong S&P 500 or the weak global/emerging markets?
One this is certain: A ton of assets are under performing the S&P 500 YTD!
Members shorted the Nikkei and Emerging markets and harvested gains recently. If certain conditions take place, I will be looking to repurchase shorts in this area again.
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