Emerging market stocks were on a roll until May when fears of a Fed rate hike and its impact on developing countries reversed the trend. Alex Muromcew, portfolio manager for the TIAA-CREF Emerging Markets Equity fund, said investors should stay positive despite the recent drop in prices. 'I think those fears are overblown,' said Muromcew. 'I think it will be a gradual, slow interest rate cycle. Some of it is just a natural correction, some profit taking. I’m still optimistic on emerging markets.' Muromcew’s TIAA-CREF Emerging Markets Equity fund is up just over 1% so far this year, but is down nearly 12% in the past 12 months as the volatility has taken its toll. A lot of that choppiness has come from the huge run up and recent turn down in Chinese stocks. 'We are watching the Chinese economy. It is slowing. The government is taking measures to mute that and stimulate the economy, so we are still seeing opportunities in China,' said Muromcew, adding that he prefers the China H shares which are denominated in Hong Kong dollars as opposed to A shares which are generally only available for trading by mainland Chinese citizens.