Red Hot Emerging-Market Stocks Are Showing Signs of Overheating
BlackRock's Rieder Says EM Traders Must Watch China
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The scorching gains that have put emerging-market equities on track for their best year since 2009 are showing signs of flagging.
After the MSCI Emerging Market Index’s surge of about 17 percent this year, momentum indicators suggest the rally is losing steam. The benchmark is approaching a resistance level formed by the trend line connecting the peaks in 2011, 2014 and 2015. While breaking above it would be a bullish omen, other technical signals also point to some overheating.