Play the Best Comeback Story of 2014

If you didn't own emerging market stocks back in 2007, you were considered a moron. April 08, 2014     Play the Best Comeback Story of 2014   Momentum slumps--but opportunity emerges Flipping the emerging markets switch Plus: Don't let the market drive you insane...   Greg Guenthner coming to you from Baltimore, MD... Greg Guenthner If you didn't own emerging market stocks back in 2007, you were considered a moron. A few years earlier, a Goldman Sachs analyst coined the term "BRIC" to describe the best emerging economies in the world at the time--Brazil, Russia, India and China. Thanks to this catchy bit of marketing genius, every investor wanted a piece of these markets. They all screamed higher in the years leading up to the financial crisis. However, since 2008, many emerging markets have been a complete disaster. The morons, as it turns out, were those who bought at the height of the frenzy. And since the current bull market kicked into gear five years ago, domestic stocks have trounced their emerging market counterparts. But all of that could change right now. Emerging markets are catching a bid. While U.S. stocks slide, now could be the perfect time to play a potential emerging markets bounce... "Emerging market funds were absolutely clobbered in the first quarter. More than $50 billion in outflows from emerging market stock and bond funds illustrated a host of systemic issues for still-developing nations as investors took flight to safer assets," explains Rude researcher Noah Sugarman. "But emerging market funds saw $3.5 billion worth of inflows last week, with equities claiming $2.44 billion, and bonds seeing $1.06 billion. That's a welcome break for EM stock funds in particular, as it snapped a losing streaking that lasted an incredible 22 weeks." Someone flipped the switch... The iShares MSCI Emerging Markets ETF (NYSE:EEM) is now down just 1% in 2014. Since its February lows, EEM has shot higher by more than 8%, compared to a 3.5% gain in the S&P 500. "By themselves, these bullish indicators wouldn't necessarily be indicative of a full-on turnaround, but emerging markets are beginning to show signs of life elsewhere," Noah continues. "Hard-hit currencies like the Indian rupee and the Indonesian rupiah have been seeing multi-month highs against the dollar that have remained largely under the radar. The MSCI emerging market index is also up almost 5% in the last month, too." Of course, a few weeks of solid performance doesn't negate all of our emerging market concerns. But it's important to remember that many emerging markets have been trading at crisis-level valuations for years. Markets lead. They're trying to tell us something here. While domestic stocks sag under the weight of falling momentum names, you could have the opportunity to take a shot at an emerging market rebound. Check out our new emerging market play in the PRO today (here's a hint: it's a BRIC)...         Collect as Much as $450 on Your Lunch Hour… Using this "Secret Job" Even if you're employed, you can collect between $250 to $900 – starting as early as 11:45 a.m. tomorrow… Without buying stocks or options, or collecting dividends. Get the amazing details here.           Rude Numbers Targets, Predictions and Wild Guesses   11 out of 13 Tuesdays have been positive for stocks so far this year. Will this trend continue today? $11 billion in annual sales for Trader Joe's are double what the grocer saw 10 years ago. 3 straight trading days in the red have completely erased the S&P's 2014 gains. $1,312 marks the spot for gold futures this morning. The yellow metal has gained about $14 in early trading... 1,834 is where you'll find S&P futures before the bell this morning. The market looks like it wants to open in the red once again...     Rude Trends When to Buy... When to Sell   Stocks took another punch to the gut yesterday. The Dow, S&P and NASDAQ all dropped at least 1%. The selloff has now pushed stocks into the red for the year... Now (more than ever!) it's important to have a plan in place for all of your trades and investments. But the most important part of that plan isn't in the specifics--it's whether you have the discipline to see it through. Before you buy a stock, you can agree that you should sell if it hits a predetermined price. But if you don't act when your mental stop loss is triggered, it's as if you didn't have any plan at all. Don't fall into the trap of holding a stock "just to see what will happen". That's dangerous, wishful thinking. It will eat into your profits and destroy your chances at booking consistent gains. If you find you're having a difficult time getting rid of a falling stock, just remember that you can always buy it back. It's not the best feeling when you have to cut your losses--but it's better than blowing up your account. [Ed. Note: Send your feedback here: rude@agorafinancial.com - and follow me on Twitter: @GregGuenthner]     Ignore At Your Own Peril Today's Must Read Links   Break Free From Costly Drugs Cooked up in Big Pharma's Secret Labs Breakthrough Fuel That Makes Oil Drilling Obsolete Protect Your Wealth From IRS Harassment     BE SURE TO ADD dr@dailyreckoning.com to your address book.       Additional Articles & Commentary: Join the conversation! Follow us on social media:         The Rude Awakening is committed to protecting and respecting your privacy. We do not rent or share your email address. By submitting your email address, you consent to Agora Financial delivering daily email issues and advertisements. To end your Rude Awakening e-mail subscription and associated external offers sent from The Rude Awakening, click here. Please read our Privacy Statement. For any further comments or concerns please email us at rude@agorafinancial.com. If you are you having trouble receiving your Rude Awakening subscription, you can ensure its arrival in your mailbox by whitelisting The Rude Awakening. © 2014 Agora Financial, LLC. 808 Saint Paul Street, Baltimore MD 21202. Although our employees may answer your general customer service questions, they are not licensed under securities laws to address your particular investment situation. No communication by our employees to you should be deemed as personalized investment advice. We expressly forbid our writers from having a financial interest in any security they personally recommend to our readers. All of our employees and agents must wait 24 hours after on-line publication or 72 hours after the mailing of a printed-only publication prior to following an initial recommendation. Any investments recommended in this letter should be made only after consulting with your investment advisor and only after reviewing the prospectus or financial statements of the company.