Investing.com - Financial Markets Worldwide
Get 40% Off
Get 40% Off
🚨 Volatile Markets? Find Hidden Gems for Serious Outperformance
Find Stocks Now

Time To Panic About Emerging Markets?

ByZacks Investment Research
Published 08/22/2013, 11:21 AM
Updated 07/09/2023, 06:31 AM

While the U.S. market has been a bit sluggish over the past week, trading has been brutal in many emerging markets. Several nations have seen their benchmarks fall by more than 10% in the past five days, pushing a number of developing nations into crash territory.
Emerging Market ETFs
The reasons for these slumps are pretty varied, though all of the countries have arguably been impacted by taper talk in the U.S. market. This is making many investors reconsider emerging markets in general, but especially some of the nations that have soared in years past and are still relatively high beta markets.

Furthermore, you can see that the epicenter of the crisis is in the Indonesian market, though a number of other Asian nations are also being impacted by this risk-off trade. Sluggish currency trading is also at play in this group, as many of the countries are seeing their currencies trade at multi-year lows against the dollar, further dulling their appeal for U.S.-based investors.

What Happens Next?
Given the quick pace of this crash, do you think this trend can continue and that more pain is ahead for these emerging markets?

Or is now the time to get in on these nations for a discount?

Original post

Latest comments

Install Our App
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.