After years of dragging their heels since the recession, emerging markets are, once again, hot. Investors have continued to tap developing nations’ stocks in a big way. After all, they are still one of the cheapest asset classes out there and the winds of a changing global economy are benefiting nations like Brazil and China, among others.
But in their recent runup, many investors and analysts are questioning if emerging markets can keep it up in the new year.
And there are certainly signs that point to a hefty decline in the value of emerging stocks. For investors who have bet heavily on the stocks over the last year or so, the time for renewed caution could be now.