With Emerging Markets (EEM) down -19% since we turned bearish in April 2013, Hedgeye Senior Macro Darius Dale presented a 105-page slide deck to institutional subscribers this week to update his thinking. (To read Dale's entire slide deck or additional Macro research ping email@example.com.)
"We see further downside at the primary asset class level, as well as elevated risk of material bankruptcy cycles in a number of key emerging market economies," Dales writes.
Here are a couple key charts from the presentation (click images below to enlarge):
Our proprietary emerging market "Crisis Risk Index."
... Our Crisis Risk Index versus Equity Market Performance.