Copying and distributing are prohibited without permission of the publisher
Feature: The return of decoupling?
06 October 2009
The credit crisis has claimed a number of victims, including the theory of decoupling. Or has it? As resurgent emerging markets leave behind the arthritic developed economies, the debate has resurfaced, writes James Norris
Emerging markets are top of the agenda for many fund managers, if the number of emerging markets fund launches this year is anything to go by. This is hardly surprising, for the benchmark MSCI Emerging Markets index is up 52% this year, putting the 12% rise of the S&P 500 very much in the shade.
Nor is it surprising, perhaps, to see the return of the debate on decoupling. The collapse of the emerging markets in tandem with those of the developed world seemed to have concluded the debate. But the recent outperformance of the emerging markets –Russia has rebounded 100% in six months – has raised the question once more.
At first glance, the debate looks a little confused. Whereas originally the decoupling debate concerned global trade patterns, the so-called ‘real economy’, now it has expanded to include the financial markets. Post-credit crisis, too, the markets are more cautious,...
Access to this content is denied because you are not logged in. Please login to view this content
Already have an account?
Subscribe
Subscribers have unlimited access to all current and archive content. Start your
subscription today - click on the button below.
Free trial
Taking a free trial will give you access to the current issue for two weeks (excluding
some surveys and articles). Start your free trial today.
