Is emerging market decoupling a myth?

Recent financial market movements have once more belied the notion that emerging markets can decouple from the malaise seen in the developed economies. Year to date, emerging market (EM) equities have been a significant underperformer versus their developed market counterparts, such as US shares. It serves as a timely reminder that emerging markets often exhibit a high beta, or risk, in times of market stress, demonstrating considerable volatility that should make investors wary. Following on from the shocking collapse of Lehman Brothers back in 2008, and the subsequent unwind of l...