Emerging market equities are in a bear market as of today. So, right now, everyone seems to be talking about contagion in the emerging markets. As the day began, the US dollar was posting gains against most currencies, emerging market and developed market alike. And the MSCI Emerging Markets Index was off 1.6%, bringing it to six sessions on the trot. There's no reason for the entire EM complex to get hit like this unless you talk of contagion.
What are traders saying?
So how does contagion work...
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Edward Harrison is the founder of Credit Writedowns and a former career diplomat, investment banker and technology executive with over twenty five years of business experience. He has also been a regular economic and financial commentator in print and on television for the past decade. He speaks six languages and reads another five, skills he uses to provide a more global perspective. Edward holds an MBA in Finance from Columbia University and a BA in Economics from Dartmouth College.