Investors are
bailing out of emerging markets from Turkey and Brazil to Thailand and Indonesia, extending a selloff that began last year, amid concerns about faltering economies and political unrest.
Not exact matches
The usual proxies for global growth — oil and other commodities,
emerging market currencies, energy and mining stocks — are almost all sharply lower as investors
bail out of any kind
of trade predicated on growth in China and the rest
of the
emerging world, which accounts for 85 %
of the world's population.
Emerging markets have clearly exhibited boom / bust behaviour historically — I'm not at all convinced we'll see that level
of volatility any longer, but if an EM premium appears & becomes wide enough, that could still prove a great signal to
bail out.
At the end
of the day, price always matters, even with
emerging / frontier
markets — higher GDP growth won't necessarily
bail you
out if you blithely over-pay.