May 25, 2006 at 6:42 am by Tom Lydon
The selling hasn’t been pleasant domestically, but emerging market countries have been feeling much more pain. The iShares S&P Latin American 40 Index (ILF) is off 21% from its 2006 high and the iShares MSCI Brazil Index (EWZ) is off over 27%.
“What I think happened is that the ETFs of these
countries had attracted a giant amount of hot money and it turned, just
turned, all at once, and there was nothing underneath, not a real
market to buy the stocks that got spit out by the selloff,” said Jim Cramer of TheStreet.com
Tags: Emerging Markets, EWZ, ILF, Latin America
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