Jeff Gundlach called the EEM long versus SPY short at Sohn Conference

Eem
Jeff is a trader that I always pay attention to, even in equities. Yes, his firm runs a Trillion dollars in fixed income, but he also makes some really smart trades in equities. When you examine the longer term returns of the EEM, its easier to see why he’s made his bold call.
EEM has SEVERELY under performed the S&P 500 over a 5 year time frame. The chart shows the EEM down 1.3% going back to 2012, while the S&P 500 is up 75%
But beginning last year (2016) the EEM started to kick tail. However, into the election, the two converged and began a mirror image trading range until the beginning of 2017.
YTD the EEM is up 16.5% vs just 7.3% for S&P 500