Whenever markets underperform for years, some people go bottom fishing. The largest EM exchange traded fund, Vanguard FTSE Emerging Markets ETF VWO, That makes me think the latest emerging markets pseudo-rally one of several in this secular bear market is running out of steam.

Yet pundits and commentators are once again recommending emerging markets. Yes, valuations of emerging markets look attractive. Meanwhile, the International Monetary Fund has revised its GDP growth estimates down for major EM economies like Mexico, India and Brazil.

The World Bank expects EM GDP growth to accelerate to 4. If the Federal Reserve hikes the federal funds rate at least three times this year while other central banks stand pat or cut rates, how can the dollar not strengthen?

And if President Donald Trump carries out the policy miracles his ardent followers expect shredding regulations, cutting business and personal taxes, passing a big infrastructure package , inflation will pick up and the Fed would raise rates even faster, boosting the dollar more.

3 Emerging-Market Stocks Prepared to Take Off - TheStreet

A stronger dollar is bad for oil and other commodities in which emerging markets specialize Russia, Brazil and Mexico, for example. Greater dollar strength would likely clobber Latin America, which depends heavily on commodity exports and whose MSCI EM Latin America index surged These stocks have come a long way in a short time and are ripe for correction; greater strength in the dollar would do the trick.

Trade wars would hurt emerging markets most. But stiff tariffs and trade wars would hit emerging markets particularly hard , especially China and Mexico, the top two exporters to the U. No investor should trust it. Gold is a MarketWatch columnist and founder and editor of GoldenEgg Investing , which offers exclusive market commentary and simple, low-cost, low-risk retirement investing plans.

Follow him on Twitter howardrgold. By using this site you agree to the Terms of Service , Privacy Policy , and Cookie Policy.

Intraday Data provided by SIX Financial Information and subject to terms of use. Historical and current end-of-day data provided by SIX Financial Information.

All quotes are in local exchange time. Real-time last sale data for U. Intraday data delayed at least 15 minutes or per exchange requirements. ET Updated Pound hits 2-month low as doubts over support for U. This is the exact right way to call in sick to work.

Chicago Fed President Discusses Timing of Rate Increases.

Buy and Hold This Dividend Stock Forever

Opinion Service industries could use a disrupter like Amazon. A Closer Look at Chris Wray, Trump's Pick to Lead FBI. How to protect your family members — or yourself — from elder abuse.

Money CAN buy happiness, if you spend it right. Forget ping pong, this is the hot new work perk. Updated Uber CEO Travis Kalanick steps down after shareholder revolt. Home News Viewer Video SectorWatch Podcasts First Take Games Portfolio My MarketWatch. Retirement Retire Here, Not There Encore Taxes How-to Guides Social Security Estate Planning Events Columns Robert Powell's Retirement Portfolio Andrea Coombes's Working Retirement Tools Retirement Planner How long will my money last?

Economy Federal Reserve Capitol Report Economic Report Columns Darrell Delamaide Rex Nutting Tools Economic Calendar. My MarketWatch Watchlist Alerts Games Log In. Until New York Markets Open Market Snapshot Analyst Ratings.

Home Investing Stocks Howard Gold's No-Nonsense Investing Get email alerts. More Coverage Avoid these chemicals found in everything from shampoo to kitchen counters: Related Topics Investing U.

Finding Bargains in Depressed Emerging Markets - TheStreet

Stocks Mutual Funds Exchange Traded Funds. APR Last Week 6 Months Low Interest We Want to Hear from You Join the conversation Comment. MarketWatch Site Index Topics Help Feedback Newsroom Roster Media Archive Premium Products Mobile. Dow Jones Network WSJ. Vanguard FTSE Emerging Markets ETF U.