Decoupling Is Still Dead And Here’s The Proof

Last August, in an exclusive article to Oxford Club members, I badmouthed decoupling - the theory that the rest of the world (particularly emerging economies) could somehow party on while the U.S economy endured a recession. A quick glance at the scoreboard proves my criticism was spot-on… While the S&P 500 Index slumped 38.5% in 2008, 30 countries witnessed drops of 50% or more. Even more telling, the poster children for the decoupling trade: Brazil (-41.2%), Russia (-72.4%), India (-52.45%) and China (-65.39%) didn’t escape punishment either, despite wild predictions they would… Read more ...