There are times when one gets ahead of the other but it hasn't stayed that way forever. As the year-end is upon us, perhaps there is more potential in the next 12 months to be long the EEM (Emerging Markets) instead of the S&P500 .
Risk 10%, Goal 10%. Probability 75% (my impression) of profit.
Would anyone like to comment on the valuation disparity between these ETF's and make a fundamental analysis? Or, feel free to wait for my analysis.
The drop to the low in relative performance was 8% - which is quite close to the 10% expected as the worst case scenario. That's how relative trades set up sometimes. It has turned the corner in dramatic fashion and has almost come back to breakeven here as of March 28, 2014.