Stock Markets Exposed

us stock market - foreign/emerging markets?

does a drop in the US stock market effect other markets...i guess if the fed increases interest rate it might have a way..esp if there is a lot of trade between america and that country

Public Comments

  1. It can and often does since the US market is so large. However, even if the Dow and Nasdaq are down, emerging market funds and stocks can still be up. It depends on what is affecting the global economy.
  2. The conventional wisdom used to be that there was a low correlation between us and foreign stocks, but that's not true anymore. It's a global economy and highly correlated. That said, foreign stocks or fund are still a good way to diversify your portfolio.
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