The dramatic increase in the flow of capital into emerging markets has lifted all boats. But there are very different risk profiles among emerging markets, and not all are going to perform well this year. The most notable underperformers:
Markets appear overly optimistic that policy will improve.
Markets still don't seem to be pricing in the scope of the potential impending crisis as the Fidesz government attacks asset holders across a range of classes.
Investors underestimate the potential for populist candidate Ollanta Humala to make a serious run at the presidency.
Continued government accommodation of trade union demands will limit President Jacob Zuma's efforts to enhance the investment climate
Many have become overconfident that the end of the country's decades-long civil war will usher in a period of political stability.
Investor confidence remains high, but 2011 promises to be full of political tensions, especially given the king's failing health.