REMINDER: Today, June 12th at 11AM EDT, we will be hosting a flash call titled Are You Short China [and Other Emerging Markets] Yet? The call will include 25 minutes of prepared remarks and 10-15 minutes of live Q&A.
- Toll Free Number:
- Direct Dial Number:
- Conference Code: 663556#
- Materials: CLICK HERE
The recent volatility across Global Macro markets has provided us with a strategic opportunity to expand upon our #EmergingOutflows theme. To that tune, the $5.5B in EM equity fund outflows per the most recent week of data was the largest weekly withdrawal since AUG '11!
Analyze the current set-up in China and other Emerging Markets and discuss the best opportunities on the short side.
In accordance with the call, we will add Short CHIX (Global X China Financials ETF) to our Best Ideas list and discuss in detail why on the call. HINT: it's a play on policy tightening, rising NPL exposure and a pending property market inflection in China.
In addition to CHIX, we'll also add the following securities to our "Watch List" and will look to add them on the short side of our Best Ideas list on any meaningful bounce(s); we'll outline the bear case for each on the call as well:
- Short: FRN (Guggenheim Frontier Markets ETF) - A high beta play on LatAm and African commodity producers (FX un-hedged)
- Short: EMLC (Market Vectors Emerging Markets Local Currency Bond ETF) - A non-consensus way to play on our #StrongDollar theme
- Short: EMB (iShares Emerging Markets USD Bond ETF) - A high beta way to express our view that duration risk is accelerating globally