Power to shock

Emerging markets have proved they still have the power to shock. The asset class has not been in the news for some time, but recent developments suggest that those who always warned of the dubious quality of 'sub-merging' investments may be vindicated. This time, far from sinking quietly without trace, the sector is threatening to drag others down with it. Following the last major emerging markets collapse in 1998, many governments learned some painful lessons, instituting reform programmes and building up foreign exchange reserves. But last year, they were again hit as Nasdaq went into f...