Markets have a very short attention span. Like babies, they move on quickly from one toy, or in this case an event, to another.
For instance, markets seem to have moved on from the formation of the “Fragile Five,” a group of countries that suffered heavily when the U.S. Federal Reserve started to roll back its bond-buying program in 2013. Made up of Brazil, India, Indonesia, Turkey and South Africa, this group was marked by heavy currency depreciation, high current account deficits and political instability at home.
The slump in commodity prices and fears of a Chinese slowdown kept the pressure on these economies. However, they have started to see a comeback; in India and Indonesia, for example, a change in government has led to political and economic reforms. Investors started crowding this space and inflows into funds with exposure to these markets increased.