Hedge position in oil-vulnerable markets like India, says CLSA's Chris Wood

The silver lining for investors in emerging markets, according to Wood, is that a rise in in oil prices will see US dollar levels go south

Emerging market investors -  both in equity and debt segmets - should hedge their positions in oil vulnerable markets like India and Indonesia with overweights in Russia and other oil producers, advises Christopher Wood, managing director, equity strategist at CLSA in his weekly note GREED & fear.

Wood believes that the oil price can go much higher in the current cycle despite the correction in prices seen in recent days. While the energy demand remains strong, there has been chronic underinvestment in creating new supply, he says, which could keep prices buoyant.