Daily trading volume in EGPT has exploded in the past two weeks. Long investors might be betting that the crisis will soon be resolved and stability will return. Short investors can bet on further chaos. Value investors need to consider the long-run implications of Egypt's problems. Credit default swaps on its debt are extremely high, with yields rising due to uncertain bond market interest in new issues. There is some risk that Egypt's logistics infrastructure can be compromised by political violence. The Suez Canal seems safe for now but an explosion has taken a very important natural gas pipeline offline. It is too early to tell whether that explosion was due to sabotage, but any any infrastructure vulnerability puts additional pressure on the military to implement backup measures.
The risks of investing in emerging markets are obvious. Egypt is a boiling cauldron right now, and investors can easily get burned.
Full disclosure: No position in EGPT.