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Friday, October 21, 2016 4:44:21 PM
EM Reflation Confirming Indicator Raises A Red Flag
* October 21, 2016
With their Reflation Confirming Indicator rolling over, our EM strategists believe that it is only a matter of time until EM equities follow.
The Reflation Confirming Indicator is an equally weighted aggregate of platinum prices (a proxy for global reflation), industrial metals prices (a proxy for China growth) and U.S. lumber prices (a proxy for U.S. reflation). A downturn in this indicator suggests that global reflation may subside and that demand for commodities could follow soon after. Falling commodity prices will spell trouble for EM economies and risk assets.
EM equities decoupled from our Reflation Confirmation Indicator in early 2015. Ultimately, the gap was closed by EM equities breaking lower. Continued weakness in our reflation gauge will indicate downside risks for EM assets.
http://blog.bcaresearch.com/em-reflation-confirming-indicator-raises-a-red-flag
• DiscoverGold
Click on "In reply to", for Authors past commentaries
* October 21, 2016
With their Reflation Confirming Indicator rolling over, our EM strategists believe that it is only a matter of time until EM equities follow.
The Reflation Confirming Indicator is an equally weighted aggregate of platinum prices (a proxy for global reflation), industrial metals prices (a proxy for China growth) and U.S. lumber prices (a proxy for U.S. reflation). A downturn in this indicator suggests that global reflation may subside and that demand for commodities could follow soon after. Falling commodity prices will spell trouble for EM economies and risk assets.
EM equities decoupled from our Reflation Confirmation Indicator in early 2015. Ultimately, the gap was closed by EM equities breaking lower. Continued weakness in our reflation gauge will indicate downside risks for EM assets.
http://blog.bcaresearch.com/em-reflation-confirming-indicator-raises-a-red-flag
• DiscoverGold
Click on "In reply to", for Authors past commentaries
Information posted to this board is not meant to suggest any specific action, but to point out the technical signs that can help our readers make their own specific decisions. Your Due Dilegence is a must!
• DiscoverGold
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