10 Best Stocks for 2014: #7, ProShares Short MSCI Emerging Markets ETF (EUM)
Investor: Anthony Mirhaydari
YTD Return: Flat
Unlike the other players in our Best Stocks for 2014 contest, Anthony Mirhaydari has taken the unique angle of betting against this market instead of going long on a stock or ETF.
His reasons to be bearish include:
- Continued negative sentiment in China, Brazil and elsewhere after recent underperformance.
- Risks from the Federal Reserve “tapering” that will suck capital out of emerging markets.
- The end of the “demographic dividend” in China as the nation faces the harsh reality of slowing growth and an aging workforce.
It’s uncommon to see an investor bearish enough to bet against a region for a whole year. But Anthony was ahead early and still is right up against the S&P 500’s returns, so there might be something to the story of a breakdown in emerging markets.