EM Equities Bearish
Still a big-time emerging-market bear. We’ve had more than five years of a massive bull market in EM and commodities, so one year of a pullback is not enough to get us back into shape. Stay short on the MSCI emerging markets ETF, EEM US ($34.00), either outright or through 4-6-month ATM puts targeting the $28-24 zone. Or go outright long the short MSCI emerging markets ProShares ETF, EUM US ($28.50), which is the inverse of the EEM. Also be outright short or long puts (ATM 4-6 months) on the Korean equities ETF EWY ($52.50), targeting a move to $40 at some point in 2016.
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by Kay Van-Petersen - Asia Macro Strategist
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