Emerging markets have bounced back this year but investors need to tread carefully to avoid boom turning to bust in the second half.
The benchmark MSCI emerging market index has rallied by 6% since January 1 to reach levels not seen in over a year. Stocks in some countries have done much better: Turkey and Indonesia are up 14%, while India has posted a whopping 22% gain.
Here are four key risks investors need to watch carefully for the rest of 2014:
1. Federal Reserve tightening
2. Political risks abound
3. Uncertain economics
4. Rising oil prices