Filed under: International markets, Forecasts, Rumors, India, China, Brazil, Middle East, Thailand, Market matters, Morgan Stanley (MS), Japan, Economic data, Eastern Europe, Housing

As concerns over America’s economy began to spread in 2007, many investors decided to look overseas for protection. In order to hedge themselves against a possible economic slowdown in the U.S., traders poured money into emerging markets such as India and China, but some are starting to question just how safe these markets will be this year.

Last year, when it looked like the U.S. economy was going to get hit with a weak dollar and nasty housing market, it made sense to look to different markets for protection, but now some are fearing that the problems that are plaguing America will reach a point where they will pull down foreign economies also.

What we have seen in 2008 is a pretty substantial downtrend in some of last year’s favorite safe havens. Markets such as Korea, Thailand, Turkey and Brazil have all been hit in the first half of January and are down over 8 percent.

Continue reading Emerging markets may not be the safe haven you thought they were

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This entry was posted on Thursday, January 17th, 2008 at 11:37 pm and is filed under Stocks Money News. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.