|By Matein Khalid| The world’s emerging markets have been savaged by multiple economic, banking, currency and political shocks since 2011. Global emerging markets are far too diverse and nuanced to be analyzed as a single asset class but now trade at a 24% valuation discount to developed markets. The financial markets now price draconian scenarios for earnings, exports, sovereign credit, industrial production and economic growth. The shortage of US dollar liquidity due to unhedged foreign debt overwhelms countries like Brazil, Turkey and Indonesia. There has been capitulation in dedicated Western funds as retail investors redeem in panic. Commodities as diverse as crude oil, Dr. Copper, iron ore, aluminium, nickel and lead face 20 – 25% downside risk. Standard & Poor’s sovereign credit downgrade of Brazil to speculative junk (BB+) debt means Russian, Turkish, South African and Colombian debt is at grave risk.