For the past several weeks I've been waiting for BKF to come down into the $45 range and it finally happened this past week. This etf is equally weighted between Brazil, Russia, India and China.... all of which have been suffering the past several months as investors have unwound huge "Emerging Market" over-weightings.
The Brazilian market is off over 25% due to the recent deflation in the energy and commodity markets.
The Russian market has been absolutely killed due to the war with Georgia as well as commodity declines. This has been a double whammy which has caused a 35% slide in the Templeton Russia Fund ( TRF ) in just the past 10 weeks.
There is pessimism over Chinese productivity due to the shut downs that have occurred in preparation for the olympic games. It's kind of amazing to think how poor the air quality must be over there to justify such an extreme measure.
India went through a good correction along with the others, but reached it's low in mid-July along with the U.S. markets.
I feel that investing in BKF is probably a better move for my SEP retirement account than trying to time the various emerging markets. There 4 markets all have different strengths ( China - Production, Russia - Vast Energy Reserves, India - IT Services, Brazil - Natural Resources & Agriculture ) and all 4 have incredible growth potential over the next 30-40 years.
