Look to Frontier Markets

Published on
June 25th, 2019
Duration
10 minutes

Look to Frontier Markets

Trade Ideas ·
Featuring Steve Strazza

Published on: June 25th, 2019 • Duration: 10 minutes

Steve Strazza, co-founder of The Chart Report, highlights the knock-on effects from a dovish Fed and suggests playing the setup with a bullish bet on frontier markets. He discusses why buying frontier markets makes more sense than emerging markets at the current moment, and examines key levels of support for traders to make the play, in this interview with Jake Merl. Filmed on June 24, 2019.

Comments

Transcript

  • GS
    Gero S.
    30 June 2019 @ 07:14
    Chart pattern looks alright. But: FED is cutting rates for a reason: growth expectations. Lower fed funds rate does not mean lower interest rates but indicates higher risk. This is why over the last cycles spreads (EMBIG for example, talking about EM/FM) have widened considerably. This is not bullish for risk assets. Also, SPX tends to peak around the start of fed cutting cycles. Falling US equities is a mega though proposition for emerging and frontier market stocks to perform on an absolute basis. Several other factors in play of course (trade deal, Argentina elections,..).
  • FC
    Frank C. | Contributor
    26 June 2019 @ 02:13
    Nice job, Steve.
  • AG
    AlA G.
    25 June 2019 @ 23:00
    RAG is on fire right now.
  • ns
    niall s.
    25 June 2019 @ 12:20
    VWAP means volume weighted average price .
  • JR
    J R.
    25 June 2019 @ 07:59
    short USDARS; elections coming & coalitions formed (ie more chances to get structural reforms - see 'Juntos por el Cambio'), better macro with better FX reserves, better current account, more stable inflation, better revenues from higher commodity prices & more dovish Fed & Central Bank mildly dovish/on hold above 60%...