The markets' taper tantrum may have ended, but while U.S. shares are batting up against fresh record highs, funds still aren't finding their way back to most emerging markets.
"A sense of deja vu has taken place in emerging Asian markets," Kelly Teoh, a market strategist at IG, said in a note, highlighting that for the week ending November 6, foreign funds flowed out of Indonesia, the Philippines, Thailand and South Korea.
On Wednesday, the Dow Jones Industrial Average tacked on 0.8 percent to a record closing high of 15,746.88, while the S&P 500 added 0.4 percent to 1770.49, just a few points shy of its own all-time high. But while they've recovered from their August lows, Indonesian, Thai and Philippine shares remain as much as 15 percent off their May peaks.
(Read more: Emerging market reprieve is only temporary: Pimco)
"Moving towards the end of the year, investors' bias towards U.S. assets will likely continue and the divergence between emerging Asian markets and developed markets might widen," she said.
The region's structural problems, which came into focus mid-year and may have been masked by the Federal Reserve's decision to delay tapering its asset purchases, have only become more apparent, she said.
"Indonesia started off the month suffering a sell-off; trade data showed a slump and the current account deficit is likely to remain for a period of time. Malaysia's current account surplus is fast narrowing, leaving the country's currency vulnerable to any changes in the [Federal Reserve's] policy," she said.
(Read more: Should the US be treated like an emerging market? )
It might not be only about the macro. "Emerging market firms overall exhibit weaker aggregate earnings quality than developed market firms," Morgan Stanley said in a note. To determine earnings quality, the bank considers factors including whether margins are sustainable, asset quality and financial reporting metrics.
But not everyone wants to follow the funds flowing out of the region.
"What's happening in the U.S. at the moment is a reflection of the fact that the economy is getting better. We're not looking at boom times by any means, but certainly the economy is gradually picking up," said Ayaz Ebrahim, chief investment officer for Asia ex-Japan at Amundi, which has around 750 billion euros under management. But he added, U.S. market valuations are no longer cheap.