Why Taper-Driven EM Turmoil Is A Big Problem (In One Chart)

Tyler Durden's picture

Emerging Market equities have tumbled over 4% in the last 2 days on heavy volume...



The last time the world experienced a major Emerging Market meltdown, the US was still by far the world's major 'consumer'. However, as the following chart from JPMorgan shows, that is very much not the case anymore...


and the last few days ugly echoes of the mid-Summer Taper Tantrum in Emerging Markets (most notably Asia), while being shrugged off by most, may be much more important to any sustained global recovery than your friendly local asset-gatherer would ever care to admit.

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disabledvet's picture

just finished ye olde "buying in bulk" expedition today and i kid you not the paper towels were literally in the aisle and stacked all the way to the top of the 20 foot high rack. this country has just stopped consuming....not that over charging still isn't "way forward here" but we're having currencies blow up all over the place now. "Turkey" is not some pip-squeak piece of real estate. Neither is Venezuela or India. If the Mexican peso tanks I think you're gonna see all hell break loose. of course "there's always bitcoin."

666's picture

Gee, I wonder why gold and silver have been going up the last 2 days.

Apostate2's picture

Read today that Buffet, Soros, and Paulson have been quietly unloading stocks (by the truckload)......

CarrierWave's picture

NO need to jump to any conclusion.. Those guys buy and sell Stocks - by the truckload - all the time.

The FED is way bigger than any of them and will do wahtever it takes to prevent a Stock crash.

Don't fight the FED. Stay as calm as a Fighter Pilot. Pick your entry point intelligently. Stay with the Trend, and manage your stop losses wisely. That's the only proven way to make money in stocks consistently.


NoDebt's picture


4 days ago, all the 20-lb. brains said "it's never going down again, we're in a worldwide recovery that can never be stopped."  You're not saying they..... they.....LIED, are you?



NoDebt        My question is where are the billionaires moving their money now that the worldwide recovery that can never be stopped is coming into the station?  Could it be gold? 

CarrierWave's picture

2 down days in the markets do not a down trend make..

POMOs are coming back this week and the FED will do wahtever it takes to prevent a Stock crash.

Don't fall for ZH articles hype or readers extreme responses.. Though always entertaining, ZH articles have called for a crash for over 4 years and look where we are now.


DrunkenMonkey's picture

Wouldn't this graph action be attributable to lower 'oil' imports, in turn due to US shale oil discoveries ?