Stock prices fluctuated wildly today losing over 170 points by mid-day but as bargain hunters entered the fray, the DJIA managed an overall 7.92″ point gain by closing.

According to the WSJ, emerging markets have shed $250 billion in market capitalization in the past month, while all stock markets outside the U.S. have shed  $1.3 trillion over that period, according to MSCI.

The selloff comes as Americans’ exposure to overseas markets many be at an all-time high. Foreign markets in 2005 outperformed U.S. stocks for the third straight year, and U.S. net purchases of foreign stocks exceeded $100 billion for the first time last year. That suggests that many Americans, through their mutual funds and 401(k) plans, will feel the pain more acutely than they have in similar reversals abroad.

A co-worker of mine has lost over $20,000 in value in her modest 401 K account.  The figures above suggest that this may not be unusual.