Emerging Markets Slide;Gold Sales,London Homes Up

Emerging market stocks declined markedly in early Monday trading.The problem is,emerging markets have not addressed their domestic issues.They don't have very strong growth momentum.They really have to look at their own economies,and not blame the Federal Reserve or other developed markets,an analyst at Bank Julius Baer noted.*
Australia's sovereign wealth fund racked up record gains in 2013.As well,the Perth Mint,a refiner of gold and silver bullion into coins and bars,has posted higher sales for January as gold prices rose.Sales climbed 10% as investors sought refuge from an equities market weakened by slowing Chinese growth and Fed tapering.The price of gold fell 28% last year,but has risen 3% so far in 2014.*
Two trillion dollars of equity have been lost since the Fed started tapering its bond buying programme.We've had PE multiple expansion in markets without the earnings to back it up,points out Nick Xanders,global equity strategist at BTIG.
Both the Thai baht and stock market staged a relief rally Monday when national elections went off peacefully,although many polling places were blockaded by opposition protestors.*
Rubber prices dropped to a 16 month low on the Chinese manufacturing pullback.*
London home prices are surging because of an influx of Asian buyers.There are fears a housing bubble may be in the making.*

Investing Today:Trends and Prospects

There are certain types of home buyers that want a new home.I don't see that dissipating quickly,said Carl Tannenbaum,chief economist at Northern Trust.Prices almost across the country are rising nicely.
I don't think the risk of disinflation in the US is terribly high.The Great Recession created a lot of capacity in factories and labour markets,and we're just now bringing that down.As long as we don't have backsliding,I think the Federal Reserve will start tapering back their asset purchasing.
Chinese home prices rose as those in Guangzhou soared by the most in over two years.
The late forties and early fifties are the only really comparable period to today,according to Barry Knapp,head of equity strategy at Barclays Capital.Not until the Fed exited did defensive stocks underperform.
Looking deep within the equity market,any exposure to China massively underperformed in the past month.Japan's gain is the rest of Asia's loss.
Ford says it can capture 6% of the Chinese auto market by 2015,while Intel forecasts Q2 earnings that may beat estimates on server chip demand.PepsiCo's Q1 profit beat estimates as snack food sales rose.
iShares Dow Jones US Home Construction ETF(ITB),Intel(INTC),PepsiCo(PEP),Ford Motor Company(F),iShares FTSE China 25 Index Fund(FXI)

China Home Prices Still Rising

In spite of the government's best efforts to rein them in,new home prices in China continue to rise.A report shows new home prices are up in 67 of 70 cities.Developers are not cooperating with Beijing;nor are certain local officials.They are perhaps waiting to see how things will play out.
All the same,Peter Churchouse of Portwood Capital says we're already seeing a decline in secondary home prices.He expects to see this in new homes in the back half of the year.
The Japanese stock market is closed today,Monday,for Respect For the Aged Day.
The Australian and New Zealand dollars were down on renewed Euro debt fears as European finance ministers failed to come up with concrete measures at a weekend meeting.The euro dollar was also lower,and the dollar yen was higher.New Zealand economists see slower growth ahead because of a delay in rebuilding following recent earthquakes.
At least 18 people died in a 6.9 earthquake on the Indian-Nepalese border in the Himalayas.India sent five military aircraft to assist the residents there.Kathmandu,Nepal reported extensive damage.
At the BMW Championship near Chicago,English golfer Justin Rose took the title,while Australians John Senden and Geoff Ogilvy were second and third on the leader board,respectively.
It was 72F in Shanghai on Monday under mostly cloudy skies.Winds were W at 22 mph,and the humidity was 60%.