The Coming Crises in Emerging Markets: What Investors Can Do

By Andre Stein and Miro Vassilev

Capital outflows from emerging markets appear to be turning from a tepid trickle into a tumultuous tsunami.

Three main factors are precipitating these outflows. First, the massive liquidity that investors poured into emerging markets seeking better returns is now returning to G-7 economies as a result of the Federal Reserve’s signaling that quantitative easing will end soon.

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