Int'l Macro Vision: Sector Synopsis
MSCI EM Consolidating; Downgrading TaiwanThe MSCI Emerging Markets index (local currency) and EEM-US (USD) remain above major base supports ($41 on EEM-US), but we believe a new horizontal trading range is developing. As a result, we are neutral from a price perspective, and we would continue to favor defensive Sectors as the MSCI EM index approaches YTD highs and expected resistance. We also continue to favor EM over EAFE; the EM vs. EAFE ratio has been trending higher since March 2024. We would turn bearish only if EEM-US is below $41.
Below we highlight attractive and actionable themes within EM.
EM Countries. We are downgrading Taiwan (TAIEX) to market weight due to its 1.5-year RS uptrend violation -- reduce exposure. This is a reflection of deterioration within Technology (especially Taiwan Semiconductor). That leaves India (SENSEX) as our lone country overweight, though there continues to be a plethora of smaller countries that are bullish and/or worthy of overweights, including South Africa, Hungary, Argentina, Romania, Brazil, Indonesia, Thailand, and Pakistan (among others)... see page 2.
EM Sectors. MSCI EM Technology displays consolidating price and RS, and we are monitoring for a potential downgrade to market weight after being overweight for the past year. The most actionable MSCI EM Sectors at current levels include Health Care, Telecommunications, Financials, and Consumer Staples, all of which display improving RS -- add exposure... see page 3.
Motherson Sumi Systems is engaged in the manufacturing of rearview vision systems, interior and exterior modules and wiring harness. Co.'s business portfolio comprises electrical distribution systems (wiring harnesses), automotive rearview mirrors, polymer processing and tooling, elastomer processing, metal machining, and information technolgy, engineering & design. Co. also provides manufacturing support, including compressors, paint coating equipment, auxiliary equipment for injection moulding machines and automotive manufacturing engineering services.
Vermilion Research delivers timely, actionable, and unique research inputs to professional investors. Our research strategists highlight securities which we believe are at major inflection points, based on our various proprietary technical indicators, and offer asymmetric risk/return profiles. We believe our research methodology, which is not limited by industry sector or market capitalization, enables us to deliver superior investment recommendations.
Our process begins by organizing all actively traded stocks into coherent sectors, then into logical industry groups. We then apply our proprietary relative strength tools to identify developing price trends. Once attractive trends are identified within a selected sectors or groups, we screen for individual stocks which we believe offer the best risk/reward profile. Vermilion offers U.S. and global equity market research products. Vermilion’s research team, which has received numerous awards and accolades, has a combined 70 year of experience in the analysis of investment securities.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.