Vermilion Int'l Compass: Global Equity Strategy
MSCI Emerging Markets Pullback In ProcessThe MSCI Emerging Markets index (local currency) and EEM-US (USD) are finally pulling back, as just last week the EEM-US broke below its 20-day MA for the first time in over three months. Any potential pullback to major base support ($46 on EEM-US) would be a gift of a buying opportunity, and we will remain bullish as long as EEM-US is above $46.
Below we highlight attractive and actionable themes within EM. On page 4 we include a table of all 70 stocks highlighted in this report.
EM Countries. As discussed in our weekly Int'l Compass reports, EM countries that we are overweight include South Korea and Greece. Additionally, there continues to be several other countries that are bullish and/or worthy of overweights, including South Africa, Taiwan, Hungary, Czech Republic, Poland, Vietnam, UAE, and Pakistan. Turning to China, the Shanghai Composite displays a significant base breakout, and China has been a favorite country to add exposure to over the past month (July 3 Int'l Compass titled “China and Japan Breaking Out” and also in our July 22 Int'l Macro Vision). As long as base support holds on this pullback, we remain bullish and are monitoring China for a potential upgrade to overweight... see page 2.
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.
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