Why do some events have limited affects on world markets? Consider North Korea’s recent determination to develop its plutonium and to launch its missiles capable of carrying nuclear warheads. One might have expected some trepidation by its Asian neighbors.
Yet the iShares MSCI South Korea Fund (EWY) has barely missed a heartbeat in 2009. The basket of top South Korean companies has collectively put together a 4-month run of approx 24% through April 29. It has also managed a feat that few nations have achieved yet… a position above its 200-day, long-term moving average.
In truth, it’s mostly about a growth bias. Investors are flocking to the potential growth of Korean info tech names like Samsung and LG, as well as the market share pick-up by Hyundai. And yet, even on the value front, you have the Oracle of Omaha himself with a 4%+ stake in Korean steelmaker Posco. Each of these companies is heavily represented in the iShares MSCI South Korea Fund (EWY).
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