EM equity puts too cheap given near-record wide gap: BAML

The recent correlation breakdown between the US dollar and commodities has traders puzzled. The inverse correlation has deep economic fundamental roots: when the price of the dollar rises, the world reserve currency of choice used in international trade in effect makes commodities less valuable. When the US dollar drops, the value of commodities rises. But that relationship has changed of late. Currently, the dollar is dropping in value and so, too, is the value of commodities. Other oddities exist, as the correlation between the price of commodities and emerging market stocks is breaking down as well. To understand what is happening and get a trade recommendation along the way Bank of America Merrill Lynch derivatives research team looked...