Based on fundamental as well as technical factors, I’ve added an ultra short ETF to hedge our emerging market equity exposure. Whether fundamental or just psychological, the recent tightening by the Chinese authorities has cast a pall over emerging markets who are so dependent on China’s imports. While there are still no serious economic downturn worries; nevertheless, I feel it prudent to add this tactical flywheel to our portfolios until the fundamental and technical indicators take on a more positive picture.
