We warned investors about the bottoming U.S. dollar in early April - and explicitly said to avoid Emerging Market equities, which would come under pressure.

It’s happening. The U.S. dollar is strengthening. Equity markets in Asia are in a nose dive. Currencies in Argentina and Turkey are tumbling. And according to Hedgeye CEO Keith McCullough, it’s only going to get worse if you have your money in EM.

“EM credit, EM equity, EM currency – it’s all the same thing,” McCullough says in the clip above. “As the currency goes down, the inflation goes up, and real GDP goes down – if those three things happen in EM, things will be looking a lot worse than they are today.”

After seven quarters of globally synchronized recovery, dozens of economies around the world are starting to slow, according to Hedgeye’s Growth, Inflation, Policy model. If you’re still hanging on to you Emerging Markets exposure, you might want to rethink that – and soon.

Watch the full clip above for more.

McCullough: Emerging Markets Can Get 'A Lot Worse' - the macro show