Emerging markets are enveloped in gloom, with China’s slowdown, the repercussions of tumbling commodity prices, Middle East tensions and recessions in Brazil and Russia jostling to grab the headlines.
As a result, jittery foreign investors have withdrawn money from the emerging world for an unprecedented six straight months, the Institute of International Finance, an industry association, said this week.
But step back from the daily noise and it can be argued that, while emerging markets are not shooting the lights out, matters are really not that bad.
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