The media scrambled last week to assign a “reason” as to why the market sold off.  For the majority of market commentators, who do very little solid research or analysis, the selloff was due to the emerging market rout and currency swoon. This was not the “cause” but rather the “effect” of a “de-risking” short squeeze in the bond market and currency markets. 

I have been writing in this missive for the last several months that emerging markets were not the “nirvana” of the next great market cycle due to the ongoing economic drag that faces these countries.  I have also been consistently recommending that investors eliminate all holdings in emerging markets as well. That advice has consistently fallen on deaf ears.

The recent import data tells you all you need to know about the status of emerging market countries that are dependent upon our consumption for their livelihood.

….read the 16 page report HERE