Turmoil Sends Emerging Markets Into Tailspin

hank

Bloomberg reports Brazil's stock market off 10% for the day.

"May 18 - Rising uncertainty over U.S. President Donald Trump's future slammed emerging markets on Thursday, with equities down almost 1 percent and Brazilian assets taking an additional hit from an escalation in local political risk. MSCI's emerging market equity benchmark fell for a second straight day and Russian dollar-denominated stocks chalked up some of the biggest losses with a drop of 1.6 percent."

http://www.reuters.com/article/emerging-markets-idUSL8N1IK2HW

VintageFreak

Err...say what now?

http://stockcharts.com/h-sc/ui?s=EEM&p=D&yr=0&mn=9&dy=0&id=p61021144082

Tailspin?

https://www.merriam-webster.com/dictionary/tailspin

ONE country went down 10%. ONE. EEM went down 1.66%. How much did $SPX and $MID go down by the previous day? That was not a tailspin.

I used to think Bloomberg would be a good alternative to CNN and CNBC. So I has started watching again. Recently I had posted a ludicrous dialogue Charlie Rose had with "experts" on the French election. And now, this...

I think I'm going to go back to FETCHING my news instead of being DELIVERED my news.

[Deleted User]

The user and all related content has been deleted.

hank

Maurice said:

So Trump is blamed for a one day downturn in emerging markets. Does he get credit for the 15 percent increase year to date? Headlines and bylines are written by someone other than the author of the article. The purpose is to attract eyeballs, and exaggerations are very common. Sometimes they have little to do with the actual article.

I couldn't agree more. If anything, the EM market trouble was caused by Brazil's internal politics - not ours.
(You'll notice I reworded the title to omit the reference to Trump.) I'll go a step further and suggest that financial headlines as a general rule should not attribute market movements to political figures. To do so is to over-simplify a complex matter.

I believed the 10% one-day drop in Brazil's market noteworthy and that it might be of interest to watchers of Latin American EMs. (The preceding day there were near-hysterical headlines after the S&P fell less than 2%.) Best article I could locate at the moment. Admittedly, not a very good one.

Regards

[Deleted User]

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hank

Yes. The satire was obvious. Thanks for commenting.

EM's like Latin America are a lot like investing in precious metals. Price moves can be sudden and dramatic and one never knows which way they'll run or for how long. But we all could do a better job leaving the politicians out of our market analysis. They only wish they were powerful enough to effect such moves.

VintageFreak

Err...say what now?

http://stockcharts.com/h-sc/ui?s=EEM&p=D&yr=0&mn=9&dy=0&id=p61021144082

Tailspin?

noun
noun: tailspin; plural noun: tailspins
1.
an aircraft's diving descent combined with rotation.
synonyms: nosedive, dive, plummet, plunge, fall, rapid descent, sharp decline
"the stock market went into a tailspin"
a state or situation characterized by chaos, panic, or loss of control.
"the rise in interest rates sent the stock market into a tailspin"
synonyms: nosedive, dive, plummet, plunge, fall, rapid descent, sharp decline
"the stock market went into a tailspin"
verb
verb: tailspin; 3rd person present: tailspins; past tense: tailspun; past participle: tailspun; gerund or present participle: tailspinning
1.
become out of control.
"an economy tailspinning into chaos"