Then why even after a 20% move lower today is it still trading like its offering Emerging Markets style growth?
Should U.S. consumers and internet stocks be priced like Emerging Markets (EEM, quote) retail stocks?
The answer is, they shouldn’t be thus the market is finally waking up to the that Amazon (AMZN, quote) doesn’t really make money and there will be competitors in the organic food retailing space if there isn’t any now ( there is!).
High growth low profitability is getting torched today and for the last 6 weeks or so. Meanwhile Emerging Market value is being bought.
Places like Turkey (TUR, quote) and Brazil (EWZ, quote) are +30-35% during this time. Last year’s consensus is this year’s pain.
Bering short or underexposed to Emerging Markets and long U.S. growth is an ugly, ugly way to live.
We are not done on this trade
