SINGAPORE: Stock bulls have taken over emerging markets (EMs), a technical indicator suggests.
MSCI Inc’s gauge for developing-nation stocks has formed a so-called golden cross, a bullish trading pattern seen when an asset’s 50-day moving average crosses above its 200-day counterpart. The tidal wave of central-bank stimulus has fueled a 43% rally in EM stocks from a four-year low in March.
“It probably is a valid signal of the bull trend, ” said Nicholas Ferres, the chief investment officer at Singapore-based hedge fund Vantage Point. “EM equities have more valuation upside.”
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