A rising tide raises all boats. But in the markets, a wave can also swamp all the boats. This phenomenon appears to have been at work in the emerging markets in recent weeks.

The flare-up of violence in the Middle East is ample justification for an increase in risk aversion, which will tend to trigger a move to relative “safe havens”. Emerging markets as an asset class could be expected to fall. But the term “emerging market” covers a wide variety of jurisdictions, so there is a possibility that the wave of risk aversion will leave some value in its wake.