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Why The Emerging Market Meltdown May Just Be Getting Started

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Emerging market stock markets had a horrible back half of 2015. iShares MSCI Emerging Markets Indx (ETF) (NYSEARCA:EEM) has lost 25% of its value since the April close. It fell out of a 6 year sideways consolidation and is ending the year at over 6 year lows. What a bad run. But it could just be getting started to the downside.

The long term chart above shows the monthly price action for the Emerging Market ETF since it was launched. After a 5 year run higher right from the launch, it pulled back hard, losing 65% of its value. That was followed by a strong bounce and a 6 year sideways period.

Click to enlargep>

/www.benzinga.com/trading-ideas/short-ideas/15/12/6077952/why-the-emerging-market-meltdown-may-just-be-getting-started alt=Why The Emerging Market Meltdown May Just Be Getting Started>Full story available on Benzinga.com

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