Emerging Market Meltdown

Published on
7 September, 2018
Topic
ETF, Trading, Emerging markets
Duration
8 minutes
Asset class
Equities

Emerging Market Meltdown

Featuring Chad Morganlander

Chad Morganlander of Washington Crossing Advisors says the recent trouble for emerging markets is just getting started. Based on what he sees ahead in the currency and international bond markets, he lays out a bearish bet on an emerging markets ETF, in this interview with Brian Price. Filmed on September 4, 2018.

Published on
7 September, 2018
Topic
ETF, Trading, Emerging markets
Duration
8 minutes
Asset class
Equities
Rating
25
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Comments

  • JH

    James H.

    11 9 2018 06:47

    2       0

    Risk/Reward setup is terrible... $8 loss for a potential $4 gain this trade is skewed in the wrong direction. Puts would definitely be a better play

  • CM

    C M.

    11 9 2018 02:52

    0       0

    I agree with all his points though not a trader and don't short securities. But a play into durables, which have been doing well, 5% in gold and longer duration bonds is a bet on a slowing economy with some stagflation/deflation thrown in. Right now, the market is heavily weighed toward momentum/tech stocks, dollar rising, rates rising, short gold, short commodities, and shorting EM. So I like his positioning into dividend yielding durables and longer treasuries. I have read of a number of people moving from 6 mos to 2 years on treasuries, but Dr. Lacey Hunt on MacroVoices makes a good argument for the TLT primarliy based on the long term drag of debt.

  • EF

    Eric F.

    8 9 2018 17:01

    10       0

    Thumbs up for Brian Price, I think he’s really turning into a good interviewer.

  • DS

    David S.

    7 9 2018 17:35

    0       0

    China is trying to reduce shadow banking by replacing it within the normal banking system. It would be interesting to see estimates of changes in total debt. All though too high, the changes may be in the right direction. Of course, the orchestrated trade disruption will cause more Chinese debt. DLS

  • SS

    Steve S.

    7 9 2018 13:38

    14       1

    The risk/reward is terrible on this trade. Stop loss at 20% from its current levels and target price achieves a 10% gain.