Emerging market ETF Front page › Forums › Ask me anything › Emerging market ETF This topic contains 4 replies, has 2 voices, and was last updated by Andrew H 2 years, 6 months ago. Author Posts January 10, 2016 at 12:21 am #2315 Andrew HParticipant Hi Cam, 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? Thanks! January 10, 2016 at 7:22 am #2329 Cam 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 15, 2016 at 8:55 am #2590 Andrew HParticipant Do you think EM equities is hit the bottom as of now? Or there are too many moving parts – commodity prices (esp oil), macro, yuan depreciation? January 16, 2016 at 1:55 pm #2615 Cam HuiKeymaster See the chart in Gundlach presentation on EM and commodity prices: http://www.businessinsider.com/jeff-gundlach-presentation-januray-2016-2016-1 January 16, 2016 at 8:38 pm #2619 Andrew HParticipant In that case, EM equities has another 40% to drop? Also, since your forecast is that US equities will peak in Q2/Q3 2016, the divergence between EM and US equities will continue? Author Posts You must be logged in to reply to this topic.