With only a few weeks to go in 2013 the emerging markets need to get in gear to close the performance gap with the US markets. The iShares MSCI Emerging Markets ETF (EEM – 42.25) gained 2.65% and the iShares MSCI Brazil Capped ETF (EWZ – 48.60) was up by over 3%. The respective volatility indexes were lower and the futures followed suit. Last week the VXEWZ curve started to show some concern about the Brazilian market going into the end of the year, but a resumption to near contango indicates a clear path to finishing 2014 strong. This time last year there were many emerging market bulls looking to a strong year for both EEM and EWZ, things have not turned out that way and I have yet to hear the same sort of cheerleading for EEM and EWZ going into next year that I heard 12 months ago. The volatility markets look positive, but maybe the pundits are afraid to go public with a risky call.