Unusual Options Activity In iShares MSCI Emerging Markets ETF (EEM)
The MSCI Emerging Markets Index stands for Morgan Stanley Capital International (MSCI) and is an index used to measure equity market performance in global emerging markets.
The MSCI Emerging Markets Index consists of 23 economies including Brazil, Chile, China, Colombia, Czech Republic, Egypt, Greece, Hungary, India, Indonesia, Korea, Malaysia, Mexico, Peru, Philippines, Poland, Qatar, Russia, South Africa, Taiwan, Thailand, Turkey and the United Arab Emirates.
Kitco Media is a precious metals, commodities and mining global authority, generating and distributing cutting-edge news, market insights and data to a global audience. A couple of days ago Raoul Pal, CEO of Real Vision and “The Guy” I follow the most in the investing space did an interview with Kitco.com
If Raoul Pal, CEO of Real Vision, had to choose one place to make a 5-year investment, it would be in emerging markets. “If growth comes back, you’ll make a huge amount of money in emerging markets.”
“I think the dollar may go up further, but it’s long in the tooth now, this dollar rally, and it’s been a problem for the world,” he said. “When the dollar turns, which it will do probably over the next couple years, it changes the investment outlook which has been the U.S. over everything and it becomes everything over the U.S. So you’ll find a huge growth in emerging markets coming forwards over the next 10 years.”
I just wrote a post earlier today about how the US dollar is trading at 2 ½ year low. Yesterday, we go news that House Speaker Nancy Pelosi and Senate Minority Leader Chuck Schumer agree and now pushing Majority Leader Mitch McConnell to use a $908 billion bipartisan stimulus plan to get money to people and business by the end of the year. This is more than likely to put downward pressure on the US dollar.
If I can see what’s going on, certainly the Smart Money can see what’s going on. Today, I noticed the Smart Money buying a boat load of call options that expire in January. In particular, I'm talking about the Smart Money buying over 200,000 call options at the $53 strike price.
Tomorrow, I'm joining the party and jumping in with the Smart Money as the US dollar is sitting at 2 1/2-year lows and as the chart suggests price on the EEM has more upside momentum.
This post is my personal opinion. I’m not a financial advisor, this isn't financial advise. Do your own research before making investment decisions.
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