#2 in the Best Stocks for 2014: ProShares Short MSCI Emerging Markets ETF (EUM)
Investor: Anthony Mirhaydari
YTD Return: +12%
Turmoil in emerging markets has been a dominant headline so far in 2014, and trouble in China particularly has been a large reason for bearish sentiment across the board.
That’s good news for Anthony Mirhaydari, though, considering his 10 Best Stocks for 2014 entry was an explicit bet against emerging markets. The Pro Shares Short MSCI Emerging Markets ETF (EUM), as the name implies, aims to return two times the inverse performance of the iShares MSCI Emerging Markets ETF (EEM).
So with emerging markets getting hammered, EUM has been moving steadily in the opposite direction … racking up 12% gains and a second-place standing in the process.
Of course, most folks who bet on an inverse ETF don’t have a preset time horizon of 12 months. And because the fund doubles the inverse performance of the EEM, just the slightest emerging-market recovery could send this pick sliding from second in the blink of an eye.