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%.

Ewz

“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

The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.