The pillars supporting the recent rally in emerging market shares appear to be crumbling, Morgan Stanley’s EM strategy team says in a report picked up by Business Insider. “Risk conditions have turned and have started to expose weak fundamentals and structural imbalances once again,” they say, slapping an underweight rating on all EM asset classes it covers in the short and not so short term. “To be clear, we are not calling for another debt crisis, but the cost of not dealing with the EM debt problem exacerbates deflationary pressures and will likely hinder growth and efficient allocation of capital on a sustained basis,” it says. Read: MORGAN STANLEY: The pillars supporting emerging markets ‘seem to be crumbling’ and then follow it up with BI’s The market as we know it is ‘crumbling’.