In the space of three years, emerging markets have seen a dramatic fall from grace. Once thought to be a key strategic asset class, favoured by many investors, now they are essentially persona non grata.
As of mid-March, emerging market equity funds had experienced 21 straight weeks of outflows. Political turmoil in Turkey and Ukraine, coupled with devaluation by Argentina, has only added to investor angst.
But to paraphrase Mark Twain, reports of the death of emerging markets have been exaggerated. True, there are concerns about the near-term outlook, but it is important to remember a few key facts.
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