Good News Everyone! Emerging Markets May Finally Be Worth More Than My Great Aunt's Collection of Empty Bender Oil Cans!

The U.S. is Downgraded? Sweet Zombie Jesus!

Good news everyone! It seems the 'sell U.S.' narrative is gaining traction which as you know is when everyone starts screaming and running around like Zoidberg at a picnic. After Moody's recent downgrade of the U.S. credit rating it looks like Wall Street is having a panic attack like when I accidentally created Planet Express Ale using dark matter. Bank of America is proclaiming emerging markets as 'the next bull market!' Apparently they think a weaker dollar topped out U.S. bond yields and a resurgent China will make emerging markets the belle of the ball. Or as I like to say 'Now now perfectly symmetrical violence never solved anything!'...except maybe boredom.

JPMorgan Chimes In: It's Good News Everyone...For Them!

Not to be outdone JPMorgan has upgraded emerging market equities from neutral to overweight citing thawing U.S. China trade tensions and valuations so attractive they're practically giving them away! A dented confidence in U.S. assets has lit a fire under the emerging markets – probably the same fire I used to accidentally set the lab on fire when I was trying to make the smell o scope!

Numbers! Why Did It Have To Be Numbers?

The MSCI Emerging Markets Index is up 8.55% year to date compared to a measly 1% climb by the S&P 500. Those numbers are about as exciting as watching paint dry! But it seems like everyone is looking for something new after what they saw in April.

The Start of a New Rotation? Or Just Another Doomsday Device?

Malcolm Dorson head of the active investment team at Global X ETFs says recent events reinforce the need for more diverse geographical exposure. He believes that emerging market equities are 'uniquely positioned to outperform over the next cycle' due to a potentially weaker U.S. dollar low investor positioning and outsized growth at discounted valuations. Sounds like a recipe for success or disaster…much like my last invention the Quantum Fart Generator! He says that investors have only 3% to 5% in emerging markets which compare to the 10.5% in the MSCI Global Index.

India and Argentina? Hot or Not?

Dorson believes India offers the best long term growth play while Argentina is apparently cheap as chips. Sovereign upgrades in countries like Greece and Brazil are also helping. Oh my! Maybe I should invest my retirement fund...if I had one! These days you got to diversify; otherwise you might wind up sleeping in a garbage can like me!

Hope or Hype? Don't Forget To Wave Goodbye!

Mohit Mirpuri equity fund manager at SGMC Capital thinks we might be at the start of a new rotation. A weakening U.S. dollar has historically supported emerging market flows and FX stability. But the question remains: will this rally fizzle out like all the others? Only time will tell! Ola El Shawarby a portfolio manager at VanEck thinks this cycle could be different because of deeply discounted valuations historically low investor positioning and durable structural progress in key markets. In the meantime don't forget to wave goodbye to those old US stocks and embrace your new emerging market overlords! Woop Woop Woop!