Investors this year have been very bearish about emerging market currencies and other assets. Just on Wednesday, the widely followed Morgan Stanley Composite Index (MSCIEF) that tracks 24 emerging markets declined 20% from January 2018. Political uncertainty and corruption scandals in many emerging markets, along with rising interest rates in the United States, a strong dollar, and tariff threats from the Trump Administration, have been key reasons for the decline in asset prices in emerging. Compounding concerns about emerging markets in the last couple of weeks has been the Turkish crisis. Many investors have questioned whether the Turkish crisis would lead to full blown crisis or at least significant contagion to other emerging markets. Fortunately, for the moment, Turkey received a $15 billion life line from its ally Qatar on Wednesday. No doubt, concerns about Turkey’s high level of dollar denominated debt will continue to weigh on emerging markets…Read More