The emerging markets are more or less a product of the massive money printing that has been taking place in both the U.S as well Japan.
The reason “emerging markets” are falling is that “funny money” printed in the U.S has previously been “invested” in these emerging countries where one might actually expect a “reasonable return” – as opposed to investment directly in the U.S ( where one can expect “0” return ).
Big American banks take the “funny money” from Ben, and opposed to lending it to hard-working Americans, the money is used to invest in “other countries” where the likelihood of return is much higher.
What we are seeing is the harsh reality ( well I doubt it ) that the “free money” is coming to an end, and large investors are repatriating their “previously invested U.S funny money” back to their bank accounts in the U.S – in a “flight to safety”. It’s the Fed’s doing – not the emerging markets.
Here is my original post from back in September: http://potstockwatch.com/2013/09/23/emerging-markets-effect-of-qe/
You’ve had plenty of prior warning.