Exponent

Emerging Markets: So Much for 'Decoupling'

Economically, these countries did "decouple". Virtually all of them have maintained positive GDP growth while the U.S. and Europe have gone into recession. However, in the equities markets, prices have dropped much further than they have here, because we in or worsening recession are seen as the safe haven. When the dust finally settles, the emerging economies will be the ones with the healthy earnings growth and reasonable valuations.