Putting on those emerging market hedges ahead of schedule–today, right now–buying EWZ and EWW Put Options

Putting on those emerging market hedges ahead of schedule–today, right now–buying EWZ and EWW Put Options

When I posted over the weekend that coming increase in interest rates from the Federal Reserve and the possibility of soaring energy prices from a Russia/Ukraine conflict and the ensuring sanctions by Western allies against Russia constituted a double whammy on emerging market assets and developing economies. A strong dollar and higher U.S. interest rates would exacerbate a looming debt crisis (yes, yet again) in the developing world, and higher oil and natural gas prices (and tighter supplies) would hit developing economies really really hard. I said then that I’d be looking for hedges to insure against and profit from the downside risk in emerging market assets. Well, things have moved faster than I expected