Home » Info-Graphs

EM Stocks Washout Update

Updated on

EM Stocks Washout Update by Bryce Coward, CFA, Gavekal Capital Blog

EM stocks as measured by the MSCI EM Index are now down 23% from their April high and 26% from their August 2014 high. The last real emotional low we saw in EM stocks was back in 2011 when the MSCI EM Index fell 29% in four and a half months into September of that year. We are taking our cues for signs of a similar emotional low from that episode and by that metric, we may yet see further selling pressure.

In 2011 the percent of stocks above their 200-day moving average fell into the low single digits. We are at 15% today.

In 2011 the percent of stocks saw their 50-day moving average above their 200-day moving average dropped below 10%. We are at 30% today.

EM Stocks

Today the average stock’s loss from their 200-day high was 31% versus almost 40% back in 2011.

EM Stocks

50% of stocks are down by at least 30% today compared to nearly 70% in the fall of 2011.

EM Stocks

New lows reached a pinnacle of 50% in 2011 and we are only at 29% today.

EM Stocks

Leave a Comment