10 Best Stocks of 2014: ProShares Short MSCI Emerging Markets ETF (EUM)
Investor: Anthony Mirhaydari
The first pick in our 10 Best Stocks for 2014 contest isn’t just an ETF … but an inverse ETF. Anthony Mirhaydari thinks the coming year could be a bumpy one, especially for emerging markets.
That’s why he chose the ProShares Short MSCI Emerging Markets ETF (EUM) for his 10 Best Stocks for 2014 entry.
Mirhaydari has several reasons for his skepticism surrounding emerging markets. Trouble is brewing in China, for one, where demographics, a credit bubble and infrastructure overbuilding are a recipe for bad news. Plus, tapering could kill currencies in emerging markets … which would only weigh even more on the iShares MSCI Emerging Markets ETF (EEM).
As the name implies, the ProShares Short MSCI Emerging Markets ETF aims to return two times the inverse performance of the EEM. So if the emerging markets ETF indeed takes a tumble, Mirhaydari’s bet on the EUM could easily fly to the top of the 10 Best Stocks for 2014 heap.