Author: Gordon Platt

The world’s emerging equity markets had a gloomy summer, falling 19.4% in the three months through August, compared with a decline of 11.55% in developed equity markets in the same period, according to an analysis by Standard & Poor’s.

“US decoupling, which was generally accepted late last year and early this year, has now been reversed, with pundits again speaking about size, leadership and the American economy’s ability to ride out the storm,” says Howard Silverblatt, senior index analyst at S&P.;

The Philippines and Thailand were the only emerging equity markets to produce gains in August. The Russian market fell 15.23% in the month, with the conflict in Georgia, falling oil and commodity prices and the Kremlin’s meddling in the private sector convincing foreign investors to withdraw billions of dollars from the country. Pakistan’s market fell 20.57% in August amid ongoing political unrest. Even the formerly robust Brazilian market was hit with a decline of more than 10% for the month, producing a three-month loss of 24.28% but leaving it with a 12-month gain of 21.5%.

Global equity investors overall lost $800 billion in August, with markets in the United States and the Netherlands the only ones to show positive returns.

Gordon Platt