Quick Emerging Markets Trade

Published on
18 September, 2018
Topic
Emerging markets, Trading, Macro
Duration
14 minutes
Asset class
Equities

Quick Emerging Markets Trade

Featuring Michael Purves

Michael Purves, chief global strategist at Weeden & Co., has a contrarian view on emerging markets. He lays out his bullish thesis and explains how to make the trade in this interview with Brian Price. Filmed on September 17, 2018.

Published on
18 September, 2018
Topic
Emerging markets, Trading, Macro
Duration
14 minutes
Asset class
Equities
Rating
31
Sharing

Comments

  • RP

    Reinaldo P.

    21 9 2018 11:54

    0       0

    I think you should find the way to show those p&l options charts.

  • PC

    Peter C.

    20 9 2018 07:19

    0       0

    Today, I just sold EEM Nov 16th calls but at 45 v 44. They are essentially covered calls.

  • PC

    Peter C.

    20 9 2018 07:14

    0       0

    Glad to hear about EM; Tech stocks - BAT, FANG;....

  • AR

    Abishek R.

    19 9 2018 08:43

    0       0

    Wonder how this trade will be affected with Trump's January deadline for 25% tariffs on $200Bln of Chinese imports. I would assume Michael might consider rolling forward his call options to April'19 considering its probable that both US nor China would act (Blinking) before the set January deadline.

  • SS

    Steven S.

    18 9 2018 20:05

    2       1

    A hallmark of B.S. is unwavering dogmatism. While I disagree with the premise that EM will have near-term strength, that RV gives ample time on their platform to differing viewpoints and divergent theses is highly commendable, deserving of intellectual respect. Yet another aspect of RV which makes it a... ummm ...lodestone for the investing community.

  • DR

    David R.

    18 9 2018 19:19

    0       1

    Previously agreed with this thesis (USD going down, EM going up again) but the EEM is a poor vehicle because it includes junk that will weigh you down. Better to buy the stocks or else to a lesser extent country-specific funds. He glosses over the technicals - which are the most important consideration - while going on & on about fundamentals which are usually of little relevance as markets are irrational - would have liked to have seen more technical discussion to bolster his case. Don'f forget to also buy EM bonds in local currency, which will help hedge you against the weakening dollar while paying 6-10% yield. Gundlach & Dalio are apparently in I think I've read.

  • PC

    Peter C.

    18 9 2018 18:57

    1       1

    Fair analysis. I don't follow why one should use options in this trade though. Would buying outright a lot better because you don't have to fight the vol and theta?

  • ZY

    Zheng Y.

    18 9 2018 09:17

    0       13

    could we not asking the guy show up again. always with some bad intention.

  • ZY

    Zheng Y.

    18 9 2018 09:17

    0       6

    could we not asking the guy show up again. always with some bad intention.