AI PCY Forecast


Bullish Case: Emerging markets may stabilize due to recovering economic conditions, heightened foreign investment, and a favorable yield environment driving demand for PCY, suggesting potential price gains.


Bearish Case: Instability stemming from geopolitical tensions, potential interest rate hikes, and institutional selling pressures could undermine demand for emerging market bonds, leading to further declines in PCY.


Potential Outcomes:

1. Economic recovery (30%),

2. Geopolitical stability (25%),

3. Increased institutional investment (20%),

4. Interest rate hikes (25%). These probabilities reflect historical trends and current economic indicators.


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August 20, 2024


Invesco Emerging Markets Sovereign Debt Forecast

PCY      Invesco Emerging Markets Sovereign Debt











Correlated Assets

Assets that tend to move strongly with PCY



RKT Forecast + Options Trading Strategies   RKT  Rocket Companies (0.91)


HYD Forecast + Options Trading Strategies   HYD  VanEck ETF Trust - VanEck High Yield Muni (0.89)


EXR Forecast + Options Trading Strategies   EXR  Extra Space Storage (0.88)


VTWO Forecast + Options Trading Strategies   VTWO  Vanguard Russell 2000 Index (0.87)


UWM Forecast + Options Trading Strategies   UWM  ProShares Ultra Russell2000 (0.87)



Uncorrelated Assets

Assets with little price relationship to PCY



SNY Forecast + Options Trading Strategies   SNY  Sanofi (0.0)


BNO Forecast + Options Trading Strategies   BNO  United States Commodity Funds LLC - United States Brent Crude Oil (-0.0)


LNG Forecast + Options Trading Strategies   LNG  Cheniere Energy (0.0)


MTDR Forecast + Options Trading Strategies   MTDR  Matador Resources (0.01)


QS Forecast + Options Trading Strategies   QS  QuantumScape (-0.01)



Anticorrelated Assets

Assets that tend to move strongly against PCY



SPXS Forecast + Options Trading Strategies   SPXS  Direxion Daily S&P 500 Bear 3X Shares (-0.81)


SH Forecast + Options Trading Strategies   SH  ProShares Short S&P500 (-0.81)


SRTY Forecast + Options Trading Strategies   SRTY  ProShares UltraPro Short Russell2000 (-0.85)


RWM Forecast + Options Trading Strategies   RWM  ProShares Trust - ProShares Short Russell2000 (-0.86)


DRV Forecast + Options Trading Strategies   DRV  Direxion Daily Real Estate Bear 3X Shares (-0.9)





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