After several years of riding high on foreign investment cash and commodity revenue, emerging markets are in for a shock.

The shift is under way. Net capital inflows in emerging markets stood at $3.9 trillion between 2009 and 2012. Between 2004 and 2012, net capital flows in emerging markets stood at a staggering $7 trillion, slightly less than half the size of the U.S. economy. The concern is that the quality of these investments has deteriorated over the last few years, since the low-hanging fruit of earlier years is gone, forcing investors to become more adventurous.

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