Can Emerging Markets Finally Emerge?

Tale of the Tape

Good evening, everyone. The markets tumbled on Tuesday. Every major index finished lower while the Russell 2000 lagged for the second day in a row. 

Healthcare and consumer discretionary were the only sectors to finish higher. Industrials, energy, and real estate all fell more than 0.5%.

U.S. stocks may have struggled, but international markets felt international love. 🌍 💕 Can emerging markets finally emerge? See more below.

The 737 MAX is back, and boy does Boeing need a boost. $BA is down 33% YTD. 

Intel was urged to seek strategic alternatives from an activist hedge fund. Will the company actually listen? Time will tell.. 

Mexico is legalizing marijuana. Will the U.S. be next? Place your bets… 

Here are the closing prints: 

S&P 5003,727-0.22%
Russell 20001,959-1.85%
Dow Jones30,355-0.22%

🌏 Emerging Markets

Despite today’s weakness in US markets, emerging markets might finally emerge. 🙌

 iShares Emerging Markets ETF $EEM closed above $51 for only the third time since January 2018. Here’s the weekly chart: 

🇯🇵 The Nikkei 225 Index closed at its highest price in 30 years! Here’s the monstrous monthly chart:

🇰🇷 South Korea was strong and closed at a new all-time high. 
$EWY is up 36% YTD. Here’s the monthly chart:

🇻🇳 Vietnam finished at its highest price since June 2018. 👀

$VNM is up 80% since its 2020 low close. Here’s the weekly chart:

🇮🇳 India inched higher and closed at an all-time high. Here’s the weekly chart:

Speaking of India… be sure to follow Stocktwits India on Twitter and Instagram. 🇮🇳💪

Get with it, Intel

Dan Loeb’s hedge fund Third Point LLC urged Intel Corp to seek strategic alternatives after losing market share to TSMC, Samsung, and AMD.

The New York-based fund, which owns nearly $1B in Intel, has pushed for immediate action to reintroduce Intel as a leading provider of processor chips for PCs and data centers.

Dan Loeb said:

Without immediate change at Intel, we fear that America’s access to leading-edge semiconductor supply will erode, forcing the U.S. to rely more heavily on a geopolitically unstable East Asia to power everything from PCs to data centers to critical infrastructure and more.

Intel responded:

Intel Corporation welcomes input from all investors regarding enhanced shareholder value. In that spirit, we look forward to engaging with Third Point LLC on their ideas towards that goal.

$INTC increased 5% today, but is still down 18% YTD… 

Marijuana Madness 

Mexico is legalizing….marijuana? 

That’s right, the cartel capital of the world is in the process of legalizing cannabis from farming to distribution. And not only that, Mexico will become the world’s largest legal cannabis market. 🤤

Officials hope boosting cannabis competition will reduce its price, driving down demand for underground drug markets.  Mexican Congressman Ignacio Mier said: 

We are committed to regulating cannabis. It’s a right of Mexicans. 

But others aren’t so confident. Intelligence officer Alejandro Hope said: 

Whoever thinks that this law will be a magic bullet that will reduce crime and homicides is being too optimistic.

Will cannabis legalization help or hurt Mexico? Time will tell…

Boeing 737 MAX Back in Action

The Boeing 737 MAX is back in business after the company remodeled the plane following its deadly crashes in 2018. 

American Flight 718 successfully landed at Laguardia today from Miami. 👏 American Airlines President Robert Isom flew aboard the first MAX back in action, and the company’s CEO said: 

We would have never brought the aircraft back if they were not comfortable.

American Airlines will now announce when customers are flying on a MAX before takeoff. United and Southwest also plan to bring MAX’s back in 2021. 

Would you fly aboard a MAX? 🤔

Bags of… Bitcoin?

NFL players have a habit of setting goals and achieving them. After all, they are the best at what they do. 🤷

This, however, is a first for any NFL player — Russel Okung, a Pro Bowl tackle for the Carolina Panthers, is going to be paid in Bitcoin… a little over a year and a half after he tweeted: 

Okung, a long-time Bitcoin bull (his bio reads “life, liberty, and #bitcoin”), has always been known for his attempts at converting his teammates to cryptocurrency-believers. 

Maybe after they see his portfolio in 5 years, they’ll feel the FOMO? 🤷‍♂️

They’re Doctors, What Could They Know?

Earlier today, the federal government released new dietary recommendations for the first time since 2015.

A panel of 20 doctors and professors suggested cutting limits for added sugars and alcohol based on new research regarding causes of diabetes, heart disease, cancer, and early death. Sounds good, right? Well.. they didn’t listen. 🤦 

This lack of change comes as the country is in the middle of a pandemic that disproportionately affects the obese. Not a great look. 😬

Links That Don’t Suck

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📈 Chamath Palihapitiya: There’s More to Investing than Making Money 

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