History Shows Emerging-Stock Slump Is Nothing to Fret About
- Scale of declines resembles past bull-market corrections
- Sell-off cheapens equity valuations to near 15-year lows
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In the history of emerging-market stocks, there have been few years that began with such cheerful prospects as 2018 ... and even fewer first halves that ended with such disappointment.
Investors are $2.2 trillion poorer than they were six months ago, the benchmark index is close to a bear market, exchange-traded funds are seeing the worst outflows in 4 1/2 years and short traders are moving in for the kill. It does look as though the rally that added $8 trillion to equity values since January 2016 is well and truly over.