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Equities Still Standing 25% Below Their January 2018 Peak (in Gold Terms)

EMERGING MARKETS
  • In recent weeks, the current risk on environment combined with the USD weakness has levitated some EM equity markets to new all-time highs.
  • For instance, the EEM index is currently trading above its 2007 highs and is sitting slightly below its all-time high of 58.29 hit on February 16.
  • However, in gold terms, EM equities are still standing 25% below their January 2018 high (when liquidity reached its peak in the EM market pre Covid), and are trading way below their 2007 peak.
  • In the past cycle, the constant liquidity injections from central banks to support the economy have led to a rising amount of investors following the performance of risky assets such as equities in gold terms.

Source: Bloomberg/MNI

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