World stock markets is very volatile lately, and funnily seems to be synchronised as well. Hmmm, does that mean DM or EM have the same economic dynamics? Definitely not, the DM interest rate is near zero while EM is far more higher.
Debt level in DM is far more than EM. So, why does the DM or EM markets MOVE in a synchronised way?
Each economy has its own social dynamic and financial dynamics, which has a different factors effecting them. But the synchroncity appears irrational, how do we explain this phenomenom.
MyView
One cannot even predict what another person think, how would one then predict how the crowd thinks?
EM = emerging markets
DM = developed markets
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