How Emerging Markets ETF Followed a Classic Elliott Wave Pattern
Here’s what happened after the completion of a “bullish triangle”
by Bob Stokes
Updated: November 02, 2021
A Charles Schwab survey shows that 15% of today's retail investors started investing in 2020.
And, regarding 2021, an August 2 CNBC headline said:
New investors are jumping into the market
So, when you combine the influx from this year and last, that adds up to a lot of new investors.
This is mentioned because some people who are new to investing may see the phrase "emerging markets" and get the impression that this is synonymous with only small countries.
Yet, "emerging markets" covers 75% of the world's population, and are comprised of nations like China, India, Russia, Brazil, South Korea, Thailand, Taiwan, Malaysia and more.
All told, emerging markets account for about a third of global GDP.
The point being -- new and veteran investors alike should at least have emerging markets on their radar screen for consideration. Yes, there's risk, yet there's also opportunity.
Consider a classic Elliott wave pattern in the Vanguard FTSE Emerging Markets ETF.
Our April 2020 Global Market Perspective said:
Largest emerging markets ETF completes bullish triangle.
Of course, the completion of that bullish triangle implied that the next price move would be up.
That's exactly what happened. Here's a current chart from Mark Galasiewski, an Elliott Wave International global analyst who focuses on the Asian-Pacific:
As you can see, the Vanguard FTSE Emerging Markets ETF zoomed northward right after Mark's bullish analysis in April 2020. Since then, the value of this exchange-traded fund has increased by approximately 55%.
Keep in mind that our Global Market Perspective is filled with charts and analysis based on the Elliott wave model.
In addition to emerging markets, you'll find coverage of so-called "developed" financial markets in the Asian-Pacific, Europe, as well as the U.S.
Plus, our Global Market Perspective brings subscribers in-depth analysis of cryptocurrencies, bonds, metals, forex, energy and much more.
Follow the link below to read our Global Market Perspective for yourself.
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