Emerging market stocks have seen better days.
The EEM, an ETF tracking emerging market stocks, is trading firmly in a correction, down over 10 percent since its January high and falling nearly 5 percent in the last three months alone. Its performance for the month of May is negative for a second month.
Of course, this comes as the U.S. dollar has gained ground and emerging markets fall out of favor. We will say, however, that the dollar is showing signs of finally seeing a short-term breather, which should bode well for emerging market equities.