1.Risk Happens Fast with ETFs…$546 Million Pulled from EM Bonds in One Week.
Emerging Markets Biggest Outflows Since 2004
Strong dollar will make foreign debt more expensive.
Foreign holdings of U.S. Treasury securities fell for a third straight month in September as China and Japan, the two biggest foreign owners of Treasury debt, both trimmed their portfolios – The Treasury Department says total foreign holdings dropped 0.7 percent to $6.15 trillion in September – China, the top foreign holder of Treasury debt, reduced its holdings 2.4 percent to $1.16 trillion in September – It marked the fourth straight month that China has cut back.
And IWM (small cap) also keeps going, another 83 million shares traded. In the last 4 sessions this fund has traded about 350 million shares and is up 8.9% in the past 5 sessions and the fund has also hit an all-time price high. SPY is up only 1.6% over the same 5 sessions
Thanks to Dave Lutz at Jones for chart.