To be fair, there is an external culprit in the form of the U.S. Federal Reserve, which is steadily tightening monetary policy and reducing its balance sheet, sending the dollar stronger and yields higher. But let's not confuse symptoms with the cause of fundamental imbalances aggravated by unhelpful decision-making.

Markets have certainly taken note. The Turkish lira is more than 60 percent weaker this year, while the Argentine peso has more than halved in value.

The typical playbook for emerging markets (EM) is that a sharp currency devaluation eventually leads to a self-correcting mechanism — a large balance of payment deficits corrects as imports become more expensive and exports more favorable, or what economists deem a front-loaded adjustment.

Due to this mechanism, some analysts are now beginning to see value in EM. Robin Brooks, chief economist at the Institute of International Finance (IIF), for instance, has observed a large shrinkage in Turkey's trade deficit of about $40 billion from the second quarter and has concluded that the lira is undervalued.