Twelve Charts This Week - 2/9/2024

What we learned from charts this week.

1

In a report about regional trading flows and portfolio positioning, Goldman Sachs says that “net allocation to China is hovering near 5-year lows. On the other hand, net allocation to Emerging Markets (EM) ex-China has risen to 5-year highs following significant net buying activity over the past two months.” NET ALLOCATION TO EM EX-CHINA now exceeds allocation to China. Note in the chart the divergence of an EM ETF that excludes China (EMXC in black) from an EM ETF that includes China (EEM in green). EMXC remains below its May 2021 high but it is up 27% since October 2022. Dollar strength has held both ETFs back to some extent because they are dollar-denominated and not currency-hedged.