While the U.S. market has been a bit sluggish over the past
week, trading has been brutal in many
. 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.
5 Day Performance
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
Furthermore, you can see that the
epicenter of the crisis is in the Indonesian
, 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
Or is now the time to get in on these nations for a
Let us know in the comments section below!
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ISHARS-MS INDON (EIDO): ETF Research Reports
ISHARS-MS PHILP (EPHE): ETF Research Reports
WISDMTR-IN EARN (EPI): ETF Research Reports
ISHRS-MSCI THAI (THD): ETF Research Reports
ISHRS-MSCI TURK (TUR): ETF Research Reports
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