Lima/New York — Emerging markets are no stranger to political crises, and 2017 was no exception, with an impeachment drive in SA, corruption scandal in Brazil and the Qatar diplomatic rift. What all these incidents had in common is the resilience markets showed in their aftermath and the buying opportunity the political calamities presented to astute investors. Almost every shock was met by a sell-off that was at least partially erased within days, weeks or months. Of course, not every crisis fades from view quickly, and for those that do, timing the rebound is not easy. Here were some of the most notable cases of 2017, which may serve as a lesson in the year to come: Brazil Reports of new evidence in an alleged hush-money scheme involving President Michel Temer sent Brazilian equities tumbling in May. But investors who swooped in the following day and held onto those stocks could have made a hefty profit as the Ibovespa rallied to a record. Temer hasn’t fared as well as his country...

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