Emerging Markets Rally But Investors Should Be Careful

Emerging market equities are partying like it was 1998. According to a research note from UBS today, emerging market equities are up by more than a quarter since their late January low, marking the second biggest rally of the period of major medium term volatility since the emerging market peak in May 2011. The only other time there has been such a dramatic movement in emerging market equities was back in 1998 after the collapse of Long-Term Capital Management in September 1998. Does Active Management Add Value In Emerging Markets? When LTCM, to prevent a full-blown financial crisis Federal Reserve quickly…