The previous article Breakout Kings provided the 22nd of January as a turning point for the DOW Jones

Industrial Index. On the 2 rd! the "rgentine #eso experienced its largest one$day decline in %2 years. The country&s central 'ank did not step in to cushion the decline as it sought to preserve its d(indling foreign currency reserves. "rgentina&s snee)e caused a flu out'reak in Turkey! *outh "frica! +kraine and ,ene)uela.

,ene)uela&s -cono.y ,ice #resident /afael /a.ire) announced a partial devaluation on January 22nd. "t the latest auction! the rate set (as %%. 0 'olivars per dollar! co.pared (ith the official rate of 0. . ,ene)uela also announced a slashing of credit card allo(ances for tourists to 1lorida! Dutch "ntilles! 2olo.'ia! 2osta /ica and #ana.a fro. 32!455 to 3655 in a step to(ards li.iting the outflo( of dollars. Turkey7s central 'ank atte.pt on January 2 rd at ste..ing the decline in the 8ira proved fruitless. This has 'een its first atte.pt at intervention since 25%2.

The *outh "frican /and took one on the chin! closing 'elo( the %% /and level to the +.*. Dollar.

The DOW&s decline 'egan in force on the 2 rd fuelled 'y the panic in e.erging .arkets. 9a:or stock .arkets around the glo'e follo(ed suit.

1und tracker -#1/ esti.ates e.erging e;uity and 'ond funds have experienced outflo(s of al.ost 34 'illion thus far this year! in addition to 34< 'illion of losses o'served in 25% . -.erging .arket e;uity funds have had % consecutive (eeks of outflo(s! the longest run in %% years. The decline of the Indian /upee versus the +.*. Dollar in "ugust and *epte.'er 25% (as perhaps a shot across the 'o( of an i.pending crisis in e.erging .arkets that have en:oyed inflo(s of 36 trillion. "s (e approach the (eek of rd "ugust! 25%=! 2entral 'anks and govern.ents have their (ork cut out if the exit of investors accelerates. >ot only have so.e e.erging nations issued de't in dollars! others such as Thailand! Turkey and +kraine face civil unrest.

Kinuthia Karan:a! karan:akinuthia?hot.ail.co. http@AAinvestorslounge.tu.'lr.co.A