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Tuesday, September 15, 2009

Overnight: Emerging markets take a big hit

Emerging market stocks – the shares of companies in countries like China, India, and Thailand – suffered a 1.5% decline in Monday's trading.

We're watching this decline closely for two big reasons: These markets are wildly popular with retail and professional investors right now. They're also trading for their highest valuations in nine years.

It's a recipe for a short-term, tradable decline.

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