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Strategy Report

Random Walk And Investor Complacency

by Arthur Budaghyan, Chief EM/China Strategist  

The near-term (next month or two) market dynamics in EM risk assets remain a coin toss. Beyond that the outlook for EM risk assets remains downbeat. EM financial markets are complacent and there are many potential negative EM/China developments that could derail the current EM rally. A new trade: go long the KOSPI / short EM overall equity index.

BCA Research | Emerging Markets Strategy

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