Bear Markets Loom as Copper-EM Doom Loop Hits Six-Year High
- Assets in Chile to China are vulnerable to commodity declines
- Rising correlation with copper clouds outlook for equities
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Copper and developing-nation stocks are marching in lockstep toward bear territory, adding insult to injury for the battered emerging-market complex.
Shares of raw-material producers traded near the cheapest valuation in five years this week, spurred by copper’s decline to the lowest in 13 months. That helped push the MSCI Emerging Markets Index toward the bear territory, extending losses from a January peak to almost 20 percent.