The theory of decoupling – the idea that emerging markets can grow in spite of a downturn in the developed world – has been revived after their dramatic resurgence this year.
Decoupling was completely dismissed by most analysts following the collapse in markets everywhere after the bankruptcy of Lehman Brothers in September.
Yet decoupling – which was so popular as an idea at the end of 2007 and early 2008, as many of the emerging markets continued to rally in spite of the credit crisis – is gaining traction once again.
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