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.