Investors are beginning to see Poland in an unfavorable light and that's because of politics. Bad policy could turn good fundamentals into bad fundamentals.

That's a very strong argument for reducing holdings out of Poland and politics might be the trigger.

The market is beginning to price the end of the (Fed) rate hiking cycle in.

We're still concerned, however, about the imbalances in the economy, but it's positive that the central bank is reacting.

We see a substantial risk of a financial crisis as an integral part of an Icelandic 2006-2007 recession. The funding squeeze of the banks will probably force them to reduce lending to domestic players, and force a sell off of external assets.

We conclude that Iceland on almost all measures looks worse than Thailand did before its crisis in 1997 and only moderately more healthy than Turkey before its 2001-crisis.