What can strengthen the case for emerging markets?

One of the biggest concerns for emerging markets investors will always be political risk. The relative stability of developed markets in Europe and North America - although notably even that cannot be taken for granted right now either - is not a luxury that exists for emerging markets investors.

That risk of political instability has been exposed this year through the ongoing issues in Turkey, for example, while polls ahead of the Brazilian election later this year suggest the market's preferred candidate is lagging in third.  Some will also see reasons to be cautious from a global monetary policy perspective. Tighter monetary conditions in developed markets can have a negative knock-on impact. Declining liquidity and a return of capital back into developed economies, can leave emerging markets as collateral damage.  However, from a valuations perspective emerging market equi...