Investors have shifted their focus to macroeconomic imbalances and have become increasingly concerned about countries with high current account and budget deficits, which rely heavily on international capital flows.
Along with monetary policy slowly turning the corner in advanced economies, a fundamental reassessment of the emerging market investment case appears to be under way, as the recent impact of the announcement of the intentions of the Fed to soon embark on a withdrawal from unconventional monetary policy seems to have exposed vulnerabilities in certain countries that may have been underestimated previously.