That said, who wants to own anything with both the words "European" and "debt" in the same breath? Rather, investors at this conference were looking to emerging-markets debt, to stay out of harm's way of the euro currency and pick up some yield along the way.

There are three ETFs which fit this theme: iShares JPMorgan USD Emerging Markets Bond ( EMB), with assets of $3.1 billion and an estimated yield of about 5%; Wisdom Tree Emerging Markets Local Debt ( ELD), with assets of $1.1 billion and an estimated yield of around 5%; and PowerShares Emerging Markets Sovereign Debt ( PCY), with assets of $1.3 billion and an estimated yield of about 5.5% .


I strongly believe that the euro is a currency which is in trouble. While the ECB along with the governments of Germany and France will do what it takes to ensure that there is enough liquidity available to European nations and banks, the euro currency will not be in favor with foreign investors. In the short run, the euro might be propped up by ECB and IMF actions, but as 2012 progresses, it is certain to weaken, especially versus the U.S. dollar.

There is an ETF that is a play on shorting the euro vs. the dollar: the ProShares UltraShort Euro ( EUO). Please note that this is an inverse leveraged ETF and should only be transacted by highly sophisticated investment managers or individuals.

-- Written by Scott Rothbort in Millburn, N.J.


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At the time of publication, Rothbort was long EIS, ISL and PCY, although positions can change at any time.

Scott Rothbort has over 25 years of experience in the financial services industry. He is the Founder and President of LakeView Asset Management, a registered investment advisor specializing in customized separate account management for high net worth individuals. In addition, he is the founder of, an educational social networking site; and, publisher of The LakeView Restaurant & Food Chain Report. Rothbort is also a Term Professor of Finance at Seton Hall University's Stillman School of Business, where he teaches courses in finance and economics. He is the Chief Market Strategist for The Stillman School of Business and the co-supervisor of the Center for Securities Trading and Analysis.

Mr. Rothbort is a regular contributor to's RealMoney Silver website and has frequently appeared as a professional guest on Bloomberg Radio, Bloomberg Television, Fox Business Network, CNBC Television, TV and local television. As an expert in the field of derivatives and exchange-traded funds (ETFs), he frequently speaks at industry conferences. He is an ETF advisory board member for the Information Management Network, a global organizer of institutional finance and investment conferences. In addition, he is widely quoted in interviews in the printed press and on the internet.

Mr. Rothbort founded LakeView Asset Management in 2002. Prior to that, since 1991, he worked at Merrill Lynch, where he held a wide variety of senior-level management positions, including Business Director for the Global Equity Derivative Department, Global Director for Equity Swaps Trading and Risk Management, and Director for secured funding and collateral management for the Global Capital Markets Group and Corporate Treasury. Prior to working at Merrill Lynch, within the financial services industry, he worked for County Nat West Securities and Morgan Stanley, where he had international assignments in Tokyo, Hong Kong and London. He began his career working at Price Waterhouse from 1982 to 1984.

Mr. Rothbort received an M.B.A., majoring in Finance and International Business from the Stern School of Business, New York University, in 1992, and a B.Sc. in Economics, majoring in Accounting, from the Wharton School of Business, University of Pennsylvania, in 1982. He is also a graduate of the prestigious Stuyvesant High School in New York City. Mr. Rothbort is married to Layni Horowitz Rothbort, a real estate attorney, and together they have five children.

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