On Jan 23, 2008, at 2:54 PM, Julio Huato wrote:
> Doug wrote:
>
>> The U.S. stock market is now trying to find its
>> footing, though the rest of the world had a
>> seizure while our markets were closed yesterday.
>> Watching that, I though - so much for decoupling.
>
> As I understand it, the idea of "decoupling" is not about the
> financial markets, but about the business cycle.
To Wall Street, the two are inseparable. But the selloff in world markets over the last few days was fueled by the perception, true or not, that any U.S. recession would hammer the rest of the world. Ergo, RIP decoupling.
Doug