After moving into bear market territory in September, the most recent decline in the MSCI Emerging Markets Index has taken its constituents to a 10-year low relative to the S&P 500 on a price to projected earnings (P/E) basis.

As Hinesh Patel, assistant portfolio manager at Quilter Investors explains, “Emerging markets have been pummeled from all sides. Their stocks still look a touch overpriced and lack technical support while US rates are rising and semiconductor companies are being published. Meanwhile, current accounts are falling as is earnings growth. And that’s before you ladle on worries about a trade war, sanctions, ballooning oil the prices, political turmoil, currency weakness and a few full-blown financial rises. It’s an ugly picture,” he says.