Brazilian shares are off significantly today, after a Monday afternoon announcement of a possible transaction tax to "curb speculative investment." Good job, idiots. They successfully "curbed speculative investment" today, with shares off about 6% and billions in wealth destroyed.
The ishares Brazil index (EWZ) is off over 5%, dragging down other emerging markets indexes while the S&P500(^GSPC below) is down only a little.
Moves like this are why people need to be careful when putting their money in "emerging market" funds, the post popular being funds tracking the BRIC countries:
At this points, India is the one with the least issues. Brazil just fired the first shot across the bow of potential investors. Russia is a declining petrostate with a mafia-like government. Speculation abounds that China's "stimulus" simply gave banks money to shove into the stock market, creating nothing but another bubble to burst.