The bullish technical outlook on EWY is backed by a solid fundamental view on South Korean shares. Strategists view Asia’s fourth-largest economy as one of the best spots in Asia to invest in 2014 because the country is levered to increased U.S. consumption and the recovery Eurozone economy. [How to Bet on Asia in 2014]
The WisdomTree Korea Hedged Equity Fund (NasdaqGS: DXKW) also merits consideration in 2014, particularly if the Bank of Korea decides to challenge its Japanese counterpart and fight slumping yen by moving to depress the won. DXKW debuted in early November and hedges exposure to fluctuations between the value of the U.S. dollar and the Korean won.
iShares MSCI South Korea Capped ETF
Tom Lydon’s clients own shares of EEM.