Buy or Sell: Emerging Markets At Year's End


As 2007 draws to a close, how should you play emerging markets? Find out from Tim Seymour, aka The Ambassador.

Momentum has been broken and a bunch of big houses have begun to downgrade emerging markets, explains Seymour. Morgan Stanley came out with a big sell and Deutsche Bank talked about caution.

From a technical perspective I think iShares MSCI Emerging Markets Indx (EEM), iShares MSCI Brazil Index (EWZ) and Petrobras (PBR.A) all probably have 5% -10% downside, he reveals.

Also, the other thing to watch is liquidity,” Seymour adds. Some of the emerging markets close for a week at a time, so be careful.

“I want to see more pain before I get long emerging markets,” adds Jeff Macke.

The bottom line: Be careful of emerging markets through the end of the year.


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Trader disclosure: On Dec. 17, 2007, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Macke Owns (YHOO), (DIS); Najarian Owns (BIIB); Najarian Owns (GOOG) Options, (TGT) Options,(YHOO) Options; Finerman's Firm And Finerman Own (FLS), (GS); Finerman's Firm Owns (TSO), (VLO), (WMT), (YHOO), (AEO), (DVA); Finerman's Firm Is Short (SPY), (IWM), (IYR), (IJR), (MDY), (MBI), (SUN); Finerman's Firm Is Short (LEH) And Owns (LEH) Puts; Finerman's Firm Owns S&P 500 Puts; Finerman's Firm Owns Russell 2000 Puts; Finerman's Firm Owns (MSFT) Calls