Underneath the Hood of Developed Markets

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Aug. 23 (Bloomberg) -- On today's "Chart Attack," Oppenheimer's John Stoltzfus and Bloomberg's Adam Johnson look at developed versus emerging markets. They speak on Bloomberg Television's "Street Smart." (Source: Bloomberg)

Time for chart attack, where we show you a couple of charts that will make you smarter and, hopefully, they will make you a little bit of money as well.

With our closer, chief market strategist at oppenheimer, john stoltzfus.

Starting with the developed markets.

Europe, australasia, and the far east.

It is all of the benchmark -- it is the benchmark for the developed world ex-u.s. and canada.

It as large weightings in australia, japan, new zealand.

It's presence, when we take a look at this -- we are taking up the hood and looking at the sectors.

This is performance year to date.

We talk about the american consumer accounting for some 56% of gdp, as we are minded frequently by your counterpart at citi.

It is not just developed market consumers.

They have been the best performing group.

What we expect -- consumer discretionary stocks generally are exporters.

Exporters can garner extra business, even when times are slow in their domestic regions.

You find growth somewhere.

At the other side, we have energy and materials.

With oil at $106, isn't it ironic that energy stocks are underperforming?

Some of it is related to the refiners, to the spread between wti, west texas intermediate, and brent crude has been exceptionally wide for a long time.

Now it is widening slightly.

The thought is that, within the energy complex, not all companies are earning at the same pace as before.

It is also about china, more than anything else.

Everybody is waiting for china to come back online.

Speaking of china in emerging markets, there was a lot of green on the developed ex u.s. screen.

As we look at the emerging markets, this is upsetting.

We cannot help but think the emerging markets are near capitulations at this point.

We think that we are getting close to seeing the last sellers sell-in here, very much like what happened with the european theater of the u.s. market.

We are still waiting to see some kind of positive thing.

It's beginning to happen out of china.

We saw the pmi positive surprises, from industrial numbers, export numbers looking better for china.

We would think that if that comes about -- you also have problems in india and brazil.

What you're talking about is frontier markets.

What do you think of that, matt?

Vietnam, malaysia, poland, etc.

This text has been automatically generated. It may not be 100% accurate.


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