Here's an important way of thinking about what's going on in emerging markets right now.
Stephen Jen of currency hedge fund SLJ Macro Partners said: "Many of these emerging-market economies [including Turkey] are cornered: they have to choose between defending the exchange rate , fighting inflation and supporting growth. Sudden stops in capital inflows tend to force countries to face lose-lose situations."
India , Indonesia , South Africa and Brazil , which were grouped with Turkey recently as "the Fragile Five" by Morgan Stanley , are in the same boat , as are Argentina and Russia. Each has its own special circumstances , but they share problems that have left investors disenchanted. There's no obvious play here for emerging markets.
Faced with weak growth and domestic strife , investors are yanking their money out of these economies. This is causing currencies to collapse , threatening inflation. Central banks , like those in Turkey , South Africa and India , can raise rates , but a sharp hike in rates will slow the economy.