High yield bonds have been big winners this year thanks to the Federal Reserve's lower for longer interest rate policies. That outperformance has pushed the ProShares Short High Yield ETF (SJB) down 13% thus far in 2016. Michael Pento, president of Pento Portfolio Strategies, believes the turn is at hand and it's to take out the junk. And it's not just bonds where Pento sees bad times ahead. He is also bullish on the AdvisorShares Ranger Equity Bear ETF (HDGE) , a fund which shorts select stocks that has dropped almost 10% this year as markets have climbed higher. Pento is long the ProShares Short Russell 2000 ETF (RWM) , even though it has dropped 11% year-to-date as the market's minnows have outperformed its whales. Finally, Pento is positive on the ProShares Short MSCI Emerging Markets ETF (EUM) , which has dropped 20% year-to-date as emerging markets have recovered thanks to stabilizing commodities and improving fundamentals. Alas, the good times in emerging markets are over, according to Pento, and investors have the opportunity to profit from their forthcoming pain.

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