Q: Is This A Generational Buying Opportunity In Emerging Markets?

Takeaway: Emerging Market stocks are down -19% since we turned bearish. We still don't like them.

Q: Is This A Generational Buying Opportunity In Emerging Markets? - brazil

A: No.

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 sales@hedgeye.com.)

 

The takeaway?

"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."

Q: Is This A Generational Buying Opportunity In Emerging Markets? - dale crisis index

... Our Crisis Risk Index versus Equity Market Performance.

Q: Is This A Generational Buying Opportunity In Emerging Markets? - dale bubbles