Should investors be concerned about a “Taper Tantrum” hurting EM?

This year’s rise in long-term Treasury yields is bringing back memories of 2013’s “Taper Tantrum” and its negative effects on EM assets. This time around, should investors be as concerned about EM? The reason behind the move higher in bond yields will be important, with a rise in real yields more negative for EM. This has not been the case so far this year, but should it occur, EM countries are better positioned given fewer external vulnerabilities compared to 2013. With that said, investing in EM is about selectivity given differences in internal vulnerabilities between countries.