Related: Selloff In Emerging Markets Will Only Get Worse

The strategist argued that emerging countries exposed to high amounts of dollar-denominated debt will find it more expensive to borrow cash.

“It’s going to play out in the yen, in Turkey, Brazil, Mexico — those are the currencies that are going to suffer in the same way they did a few weeks ago,” Derrick said.

Inverse & Bearish ETF Plays to Hedge Risk

Investors who are wary of further pullbacks in the emerging markets may also consider inverse or bearish ETF plays to hedge risk. For instance, the ProShares Short MSCI Emerging Markets (NYSEArca: EUM) takes the inverse or -100% daily performance of the MSCI Emerging Markets Index, the benchmark to EEM. The ProShares UltraShort MSCI Emerging Markets (NYSEArca: EEV) follows the -2x or -200% daily performance of the Emerging Market Index. Additionally, the Direxion Daily Emerging Markets Bear 3x Shares (NYSEArca: EDZ) tracks the -3x or -300% performance of the benchmark.

“I think we’re going to see a lot more pressure coming onto emerging market currencies once again and the market isn’t focused on it yet,” Derrick added.

For more information on the developing economies, visit our emerging markets category.