Cross-market co-movements between the U.S. and the MIST countries

This book investigates contagion from the United States to the MIST countries (MexicoIndonesia South Korea and Turkey) as a result of the 2007-2009 global financial crisis (US Financial Crisis Inquiry Commission 2011). Contagion is defined as a significant increase in cross-market correlation after a shock to one country. From a portfolio diversification perspective especially Indonesia and South Korea appear to be attractive investment targets since these exhibit relatively low levels of correlation with the United States and are unaffected by the crisis.