October’s publication summarizes two articles about the underperformance of emerging markets equities. The first notes that poor fundamentals in the so-called “BRIC” countries help explain the underperformance. The second discusses how large current account deficits in emerging markets today are the result of vulnerabilities different than those that caused difficulties for emerging markets in the late 1990s.

• “Whatever Happened to EM Equity Markets?” Michael Gavin and Alanna Gregory, Barclays, September 16, 2013
• “Different EMs – Different Challenges,” Kamakshya Trivedi et al, Goldman Sachs, October 10, 2013