THE CONCERN: Emerging-market assets are becoming more expensive, and that may push investors to sell.

THE REALITY: The valuation discount on emerging-market stocks relative to developed markets is actually about 10 percentage points wider than its 10-year average. In fact, the shares have gotten cheaper by some measures since the rally began in January 2016 as increases to earnings forecasts outpaced gains in the stock market.

The premium investors demand to own developing-nation sovereign bonds rather than U.S. Treasuries has narrowed about 200 basis points in the past 14 months, but still has about 70 basis points to go before reaching 2010 levels.

WHAT’S NEXT: Of the 142 companies on the MSCI Emerging Markets Index that have reported first-quarter earnings, more than half beat the median sales and profit estimates of analysts. That signals strategists haven’t gotten ahead of themselves in forecasting higher profits.

“Generally emerging markets have come from a pretty low base so they have got further to run,” John Roe, the London-based head of multi-asset funds at Legal & General Investment Management, said in an interview on Bloomberg TV on Tuesday.

3) Lackluster Commodities Prices Are an Ominous Sign

THE CONCERN: Because so many developing nations have a big portion of their economies tied to commodity production, the flat-lining in materials prices over the past year and the recent selloff in oil bode ill for growth.

THE REALITY: Emerging-market assets are breaking their link with commodities as traders focus on the rich rewards offered by carry trade—where investors borrow in low-interest-rate countries and buy higher-yielding assets. High interest rates from Russia to Brazil have offered an attractive proposition to investors, allowing currencies from the energy exporters to shrug off this year’s dip in oil prices.

WHAT’S NEXT: Developed economies don’t seem to be in a rush to quickly raise interest rates from historic lows anytime soon. Still, it’s possible the divergence from commodities can run only so far. The law of averages may kick in, limiting those gains.

Read: Emerging-market currencies may be set for an imminent pullback