Ultrashort Emerging Markets (EEV) Should Come with a Warning Handle

Ultrashort Emerging Markets (EEV) should have a warning label on it; we were "fortunate" to have a 0.1% stake in it yesterday but going back to yesterday's discussion about how asset allocation is everything - just having this hedge on yesterday alone can cost you nearly 40%. I routinely carry this as a 3-4% stake. You can see it's doubled earlier this month in under 2 weeks, than in the past few sessions nearly been halved. Yowsers.

I'm spending a lot more time with these ETFs rather than individual companies since everything is so random on an individual company basis; and as I look what to rebuy to begin rehedging I was shocked to see the price back in the $110s (or $100s) when I saw it yesterday in the $170s.

p.s. maybe we'll call this the Volkswagen bottom. It has been so unrelenting easy to be a short for so long - for once something blew up in their face on a massive scale. Too soon to tell.

Long Ultrashort Emerging Markets in fund; no personal position