Report
Dave Nicoski ...
  • Ross LaDuke
EUR 92.39 For Business Accounts Only

Int'l Macro Vision: Sector Synopsis

Finding Leadership Within Emerging Markets



The rising U.S. dollar (DXY) has led to staggering underperformance from emerging market equities over the past 18 months, but we are starting to see early signs of a potential bottom on MSCI EM (EEM-US). Specifically, the EEM-US has reversed topside its 6-month downtrend... see chart below. If MSCI EM has indeed bottomed, we want to be buying the leaders; that is where this report comes in.



Below we highlight attractive and actionable themes within EM.



EM Countries. India (SENSEX) and Thailand (SET) are leadership within EM, and are worthy of overweights. Additionally, while Taiwan (TAIEX) and South Korea (KOSPI) are still in multi-month price and RS downtrends, we do see several attractive individual stocks starting to emerge... see page 2.
EM Sectors. EM Sectors that stand out as being particularly attractive include Energy, Financials, Materials, and Industrials -- add exposure. Within Financials, we like Indian banks which are leadership. Within Industrials, Asian companies are an attractive theme... see page 3.
Provider
Vermilion Research
Vermilion Research

Vermilion Research delivers timely, actionable, and unique research inputs to professional investors. Our research strategists highlight securities which we believe are at major inflection points, based on our various proprietary technical indicators, and offer asymmetric risk/return profiles. We believe our research methodology, which is not limited by industry sector or market capitalization, enables us to deliver superior investment recommendations.

Our process begins by organizing all actively traded stocks into coherent sectors, then into logical industry groups. We then apply our proprietary relative strength tools to identify developing price trends. Once attractive trends are identified within a selected sectors or groups, we screen for individual stocks which we believe offer the best risk/reward profile. Vermilion offers U.S. and global equity market research products. Vermilion’s research team, which has received numerous awards and accolades, has a combined 70 year of experience in the analysis of investment securities.

Analysts
Dave Nicoski

Ross LaDuke

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