Time To Buy Emerging Markets?

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Includes: ADRE, DBEM, EDBI, EDC, EDZ, EEM, EEMA, EEME, EET, EEV, EMEM, EMF, EMLB, EMSA, ESGE, EUM, EWEM, FEM, FLQE, GMF, HEEM, IEMG, KEMP, KLEM, MFEM, MSF, PPEM, RFEM, ROAM, SCHE, SPEM, VWO, XSOE
by: Hedgeye
Summary

It’s not time to jump back onto the long side of Emerging Markets – yet.

We've been warning subscribers all year about the risks of a global growth slowdown that would hit Emerging Markets.

Whether Emerging Markets become a buy soon depends on the path of the U.S. dollar.

It’s not time to jump back onto the long side of Emerging Markets – yet.

We’re all about rate of change here at Hedgeye. For example, when economic data for markets we haven’t liked become “less bad,” that’s usually a very good time to get involved.

Relative to U.S. markets recently, Emerging Markets have certainly been “less bad.”

Does that indicate it’s time to go long a sector we warned subscribers to stay away from throughout 2018? Not necessarily. Hedgeye CEO Keith McCullough cautions that the signals haven’t improved enough to jump in on the long side.

“Is this the end or a pause in the bear market in EM? That’s going to be determined by the path of the dollar,” McCullough explains in the clip above. “If we thought it was a good time to buy EM and short the dollar, we would make that call. Obviously, we haven’t.”

Watch the full clip above for more.

Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.