​MCM Partners’ Law: The EM-DM Volatility Divergence

The spike higher in the U.S. dollar has seen a positive abnormal return in the S&P 500 in July, and with weak sentiment on China and emerging markets, this trend is not expected to reverse in the short term, according to Keith Law, head of quantitative research at MCM Partners in Hong Kong. Also in Law’s monthly column, he looks at why a Sept. defensive call ratio in the HSCEI currently looks attractive.