Is it a good time to buy into beat-up emerging markets stocks and bonds?
Assets in the high-risk, high-return sector are arguably cheap after the last few dismal years. Prices briefly rose after the swoon that followed the devaluation of the Chinese yuan in August, but they have fallen further with the recent volatility in China and are well below their post-financial crisis highs.
"Emerging markets stocks are cheaper than they have been historically, relative to themselves and to the rest of the world," said Gary Ribe, chief investment officer for financial advisory firm Macro Consulting Group. "The question is whether the valuation gap is big enough now to invest more in the sector."