Companhia Sanea (SBS)

[flatlander_60048]

This is a pretty screwed up environment. The Fed held off on interest rate increases supposedly due to concerns for the emerging market. Yet the emerging markets are likely to perform worse in the short term if Fama, French, Seymour are correct. The hedge fund managers like Seymour are looking for a signal that conditions are changing that would favor value (i.e., emerging markets) over growth yet the Fed holds off out of concern for these markets. I guess its a question of the underlying economy vs the traders looking for the market signal. However, one might argue that money flowing into the emerging market bond and stock markets would help lift the currency and thus benefit the real economy and not just the market.



FL