The Emerging Market is Brazil.
Here's the Brazil ETF EWZ Chart
It seems right now everything that can go wrong is going wrong in Brazil.
- Brazilian Presidential Candidate killed in Aircrash.
- Brazil economy contracted by 0.6% in the second quarter, marking a second consecutive decline (Technically, that's a recession)
- Moody changed its outlook for Brazil's government bonds to negative, meaning it sees a ratings downgrade as more likely
- Moody’s expects Brazilian GDP to grow less than 1% this year, the country’s worst rate since 2009, and by just 2% in 2015.
What's worse: Brazil will elect its President in October and the political choices there look very unattractive from economy standpoint.
What needs to be seen how market correction shapes up. Technically, market is still trading above 50 dma and hence investors will wait little longer before hitting the panic button.
The blogpost is purely for educational purpose.