Markets took a tumble on emerging market risk. I don't know how long emerging market risk is going to last, and each market has its own individual problem, but I know one thing for sure, after this sell off, in emerging markets, I don't expect emerging markets to go much lower much longer.
The U.S. dollar is extremely strong at the moment inflation is very low ( even though a lot of people are debating whatever the FED is using to determine inflation is wrong, because, as I'm sure almost anyone will agree, the real prices of goods and services have increased quite notably the last couple of years). But emerging markets, which have economies much larger than ever before in history, are trading at lower prices than during the height of the global crisis. The risk/reward seems disproportionate to me and all these sell off in emerging market seems to be very short- term thinking, although some countries do have legitimate risks. Overall these concerns about China and Turkey seem to be extremely exaggerated, China has a much bigger economy now then it had when its ETFs were trading at their peaks (FXI, HAO) and the outlook still looks strong. China has high savings, and a ton of foreign currency reserves and a developing domestic economy. There is real production of real goods happening in China, and while the shadow banking system and other concerns around china seem legitimate, they are to some extent already priced in and with the government in China being able to take such strong top-down action, I doubt it will cause much more damage.
Even if china does explode and go lower, I would probably start doubling down every 5-10% it went lower, because fact is china is a production machine and after such an explosion, I guarantee you they will spring back.
other than that I have started reading some of Peter Schiff's books as well as looked into other books like Currency Wars and strongly believe that the current stregnth of the dollar under rampant federal Quantative easing is unsustainable.
Note: not a recommendation to buy or sell, always consult a registered financial advisor. I own some of the stocks mentioned here.
ADMP: This stock is crazy. 6 drugs in pipeline, there main drug which they are very excited has been undergoing constant research from the CEO and they have been acquiring patents and the necessary requirements, which is extremely bullish. the market cap is only 50m at the moment, and even if one of their drugs passes ( the other drugs are mostly confined the asthama/ respiratory problems) they will be worth significantly more than just 50m. Lastly, they received a huge analyst upgrade, 15$ price target!! and acquired a patent, but are still trading at the same price.
MEDL: Has an app called Hang w/ that allows celebrities to broadcast to their fans. already has 1m downloads, company has other apps and an app making business, valued at only 14m, with around 50% of shares as float. If this gets any traction, it could go absolutely nuts. Very risky and OTCBB, so do not take this as a recommendation to buy or sell, do your own homework.
China pollution stocks: Still in play imo, this is a big issue for china, these are more of a long-term play as the issue will keep popping up here and there, but overall expect anything to do with clean energy and the like in china to be worth more next year than it currently is.