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Anand Dookie

Emerging Markets or Submerging Markets

Over the year, emerging markets have been slumping. In recent days the Indoesian, Thai, and Indian markets fell. In addition the their currencies have been depreciating against the dollar. Below is a look at the JP Morgan Emerging Market Currency Index, you can see in recent months markets have been tanking.

(Image Source: Risk Reversal) 

According to Risk Reversal, emerging market currencies performance correspond to the performance of the U.S. markets. Do you think emerging market currencies will begin to pull U.S. markets further down?

  • May Rian
    I have been investing in the Thai stock market , and I can say that this is a tough year. There are always opportunities to make money if you buy and sell at the right timing (not good for long term holding). I think the U.S. market still has a big impact on the emerging market, but not vice versa. Mainly the U.S. market is going down because of Q2 earnings and fed tapering worries.
  • Anand Dookie
    If investors are not confident in U.S. markets, I think they would have a though time being confident in other markets around the world. However, if you don't see growth potential in the U.S. I can see investors transferring funds into emerging markets.