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Int'l Insights: Bullish Stocks

Buy the Pullback in Emerging Markets



The 6-month uptrends on MSCI Emerging Markets index (local currency) and EEM-US (USD) remain intact, and we remain bullish. We have discussed for months how we expect support at the uptrend, which also coincides with the 50-day MA on EEM-US. We are getting that test now -- buy. While a more significant pullback is not our expectation, we would view any pullback to $48 support on EEM-US as a buying opportunity.



Below we highlight attractive and actionable themes within EM. On page 4 we include a table of all 90 stocks highlighted in this report.



EM Countries. As discussed in our weekly Int'l Compass reports, EM countries that we remain overweight include Taiwan, China, and South Korea. Taiwan and South Korea have pulled back some with the general pullback in global Technology names, and we are buyers on this pullback... see page 2.
EM Sectors. Defensive EM Sectors (Staples and Utilities) continue to underperform and are near YTD RS lows;