Earlier this week we received bad news on China’s economy. For the last decade, growth in China has helped fuel many markets but cracks in the foundation are surfacing. February China exports dropped by an astounding 18.1% and its trade deficit rose to the highest level in 2 years. The first effects are being shown in the Emerging Market (EM) economies as they have underperformed. Commodity driven economies, like the EM, need China to grow for them to grow. As of this writing, China’s stock market has entered bear market territory which is defined as a 20% drop from the peak. Whether this is the end of China’s continued economic growth is still up for speculation. The EM markets are inexpensive and not for the faint of heart, but one should revisit their total EM exposure just in case.