January 10, 2016 at 12:21 am #2315
What is your view on emerging market now? I am thinking of adding ETF, such as, EDC, EEM and etc.
The P/B of emerging stock is below 08′ level and is now equivalent to 01′ and 03′ level. Buy EDC/EEM and hold for 6 months, and there can be a 20+% returns?
January 10, 2016 at 7:22 am #2329Cam HuiKeymaster
EM equities have been highly correlated with commodity prices, which are inversely correlated to the USD. In effect, a bet position on EM is a bet on USD weakness.
While I am constructive on commodity prices and therefore EM equities, you also need to be aware of the macro bets that you are taking if you buy EEM, etc.
January 16, 2016 at 1:55 pm #2615Cam HuiKeymaster
See the chart in Gundlach presentation on EM and commodity prices:
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