Market Timing Strategies in Emerging Markets Portfolio

Download PDF: Market Timing Strategy of Emerging Markets Portfolio Despite the recent volatility from the trade war and deterioration in global growth, from a valuation perspective, however, EM stocks remain cheap compared to its historical averages and relative to DM equities. Since around 2012, as the earnings generation capability of EM stocks declined, investors haveContinue reading “Market Timing Strategies in Emerging Markets Portfolio”

July 2019: Recession vs Reflation

Download PDF: Monthly_201907 “For months investors have been concerned about potential recession in the U.S., yet the stock market is at all time high. How could we reconcile these developments?”, asked one my friend who is working at an asset management company. The effects from reflationary effort from China has yet to be seen andContinue reading “July 2019: Recession vs Reflation”

June 2019: Searching For The Tipping Point

Download PDF: Monthly_201906 Theme 1: Long Selected Undervalued Countries and Short U.S. Equities. This week U.S. PMI data shows a significant slowdown in the expansion of U.S. economy (manufacturing PMI 50.6 in May 2019 from 56 in the beginning of the year), raising the odds of undershoot of earnings forecast of U.S equities and theContinue reading “June 2019: Searching For The Tipping Point”

VIX-Based Hedging Strategy for Emerging Markets Equity Portfolio

Download PDF: EM_VIX_Hedging_strategy EM equities’ superior returns relative to its DM counterparts have been associated with higher volatility and left-tail risk. Rule-based portfolio hedging reduces the severity of tail-risk and performance drag while improving EM portfolio’s risk-return profile over the long run. Currently EM VIX spread over S&P500 VIX is at an all time low,Continue reading “VIX-Based Hedging Strategy for Emerging Markets Equity Portfolio”