JohnKicklighter

Emerging Markets Implied Volatility Doesn't Match Price Action

Kort
AMEX:EEM   iShares MSCI Emerging Index Fund
4
Here is another divergence between how the markets are positioning and how they are protecting/hedging. The MSCI Emerging Market ETF is trading around the floor of a multi-year range, and yet its implied volatility (inverted here) is still showing relative optimism. Is this complacency that has an ugly ending or evidence that it won't make that critical bearish break?

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