Publisher's note: It looks like major financial trouble brewing just a bit south of the border in Argentina, and it also looks like this could a lot of financial fecal matter to hit the fan. Buckle up America!
Fox News: Emerging markets have descended into chaos in recent days as investors worry about the fallout of Fed tapering and grapple with ineffective governments.
Nowhere are those concerns more clear than in Argentina, which in recent days has become the epicenter of emerging-market turmoil as its currency has plummeted 20% this month alone.
The trouble in Argentina and other emerging markets appears to be having a spillover effect on developed markets like the U.S., where the Dow Industrials are on track for their worst week in eight months.
“Companies and investors that deal in emerging markets also deal in developed markets’ stocks. When crazy stuff happens, correlations approach unity. We forget this over and over again, and at our own peril,” Michael Block, chief strategist at Rhino Trading Partners, wrote in a note to clients on Friday.