Thanks to months of speculation that the Fed would taper its bond-buying program (it eventually did in December), 2013 was a tough year for emerging markets. While many analysts are predicting emerging markets will rebound over the next few months, there's one potential risk that is particularly unique to 2014: a vibrant electoral cycle.
Is democracy alive and well in countries across the asset class? Not exactly. However, elections in five important emerging markets, which together represent around 7 percent of the world’s economy, might make it tricky for investors trying to navigate political risks after a rocky 2013.
Dubbed the 'Fragile Five' by investment bank Morgan Stanley, the countries are Indonesia, South Africa, Brazil, Turkey and India. The 'Fragile Five' will all hold hotly contested general elections in 2014, spread out from April through October. Even more intriguing, aside from South Africa, no candidates have shown a clear lead in opinion polls.