Financial Crisis Early Warning System [SPDR S&P 500 ETF Trust, iShares MSCI Brazil Index (ETF), WisdomTree India Earnings Fund (ETF), Market Vectors Indonesia Index Etf, iShares MSCI South Africa Index (ETF)] - Seeking Alpha

Financial Crisis Early Warning System [SPDR S&P 500 ETF Trust, iShares MSCI Brazil Index (ETF), WisdomTree India Earnings Fund (ETF), Market Vectors Indonesia Index Etf, iShares MSCI South Africa Index (ETF)] - Seeking Alpha



This is a great article by Eric Parnell about watching foreign bond markets for clues about when the U.S. stock market might have another pullback.  Since we now have a global economy, it does indeed matter if other nations default on their debts.  Think back to the stock market volatility of the past when Greece, Spain, and Italy were in the news about their debt problems.  Eric suggested monitoring two foreign bond funds, EMB and PCY, as an early warning signal for a decline in stocks.  When EMB and PCY go down in price, the S&P 500 will likely follow.