Pimco Remains Upbeat on Emerging Markets

Emerging markets produced great returns last year, but there were also several reminders of how risky they can be.

In May and June, fears of interest rate hikes in some of the most developed nations sparked a broad-based selloff in emerging-market debt and equity. Then a military coup in Thailand sent the local stock market down 15% in December as capital controls were implemented. And the president-elect of Ecuador roiled the local debt market when he reiterated plans to "restructure" the nation's debt.

More recently, Venezuelan President Hugo Chavez announced plans to nationalize the nation's largest telephone company. ...