The IEM ETF has a significant correlation to the $US as well as global equities and if our assessment is accurate and the $US is set to correct and stocks bounce we should see a strong few months for emerging markets stocks sooner rather than later.
- Emerging market economies largely borrow funds in $US hence their interest bill falls if the $US drifts lower, and of course vice versa.
- Importantly while we are looking for a decent bounce by the IEM we are looking to exit into such strength.
MM is looking to cut our IEM position ~10-15% higher
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